Question

classify the following as per american system of accounting?
and explain why so?
1)machinary
2)bank over draft.
​

Answer 1

Answer:

Accounting for financial transactions can be classified into two types of approaches. One is the Traditional Approach and another one is the Modern Approach. Traditional Approach is also known as the British Approach. While the Modern Approach is also known as the American Approach. Let us learn more about it.