Explain the relationship of accounting with economics and statistics.
Answers
accounting provides data of present and past for economics and stats for future pridiction.
Answer:
Relationship Of Accounting With Economics And Statistics
Accounting And Economics :-
Economics is related with rational use of scarce resources. It may be related with a single firm or the country as a whole.
Accounting is viewed as a system which provides data to the users for rational decisions.
Both Economics and Accounting helps the management in improving decision making process.
Various economic theorems and principles helps an accountant in evaluation and measurement.
Accounting And Statistics :-
Statistics are mainly used in recording accounting transactions.
Statistics is concerned with behaviour or tend of a value over a period of time.
Therefore, wherever an average relationship is needed, statistical methods have to be applied in accounting data.
Thus, study and application of statistical methods would be an extra advantage for accounting.
Statistical methods help in interpretation of accounting data, for example :- Time Series, Regression Analysis, Budgeting and Forecasting are some methods which are used mostly for analysis of accounting data.
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