Question

.The art of recording all business transactions in a systematic manner in a set of books is called- *

1 point

(d) None of these.

(b) Book – keeping

(a) Accounting

a. Standard

(c) Ledger

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Answer 1

Option(b)-Book Keeping

Answer 2

Correct question:

The art of recording all business transactions in a systematic manner in a set of books is called-

(a) Accounting

(b) Book – keeping

(c) Ledger

(d) None of these.

The art of recording all business transactions in a systematic manner in a set of books is called (b) Book – keeping.

Book – keeping and accounting:

Book keeping is a basic part of accounting, in which the information from the book-keeping is used in the accounting calculation.

"The process of recording, classifying and summarizing all business transactions in order to know the financial result is called accounting"

Characteristics of book-keeping:

• Book-keeping acts as a subdivision of accounting, since accounting is broad compilation of records.

• The process of book-keeping involves recording of all financial transactions, recording credits, debits, maintaining general ledgers, current account, production of invoices and completion of payments.

• There are two types of book-keeping system: Single-entry and Double-entry systems of book-keeping.
• Single-entry system keeps tract of the daily cash flow and maintains a record on a daily or weekly basis of financial transactions.
• Double-entry system involves the recording of credit and debit entries of the business firm. It is not directly based on the money flow, but is closely associated with the revenue flow.