what do you know about accounting? how accounting is different from accountancy
Answers
Explanation:
Accountings begins where book keeping stops. It summarize the classified transactions and analysis and interpreting the summarized result and communicate the information to interesting parties to enable them make decision. The following are the characteristics of Accounting
1. It deals with recording, classifying and summarizing of financial transactions.
2. It is narrow in scope. Accounting starts where Book keeping ends.
3. It depends on Book keeping.
4. The main function of accounting is to ascertain the net results and the financial position of the business and to communicate them to interested parties.
Accountancy
Accountancy can be defined as the systematic knowledge of accounting that relates with the principle and technique which are applied in accounting system. Accountancy tells us how to prepare the accounts, summarize its information and communicate it to interesting parties.
Accountancy is the entire body of the theory and practice of accounting.
1. It is a body of knowledge prescribing certain rules or principles to be observed while recording, classifying and summarizing of transactions.
2. It is wider in scope.
3. It includes book keeping as well as Accounting.
4. Accountancy depends both on book keeping and Accounting.
5. It includes the decision making function.
6. It is the basis of information provided by book keeping and Accounting.
Answer:
Accounting has different meanings and in one sense refers to the process of keeping or maintaining financial records; while accountancy, according to OED, specifically refers to the duties(which consists of accounting, bookkeeping, auditing, etc.) or profession of an accountant.