Question

Book keeping is concerned with ________ part of accounting process.

• A. interpreting financial statements
• B. recording financial transaction
• C. grouping of accounts
• D. communicating results

Answer 1

Answer: (B)

recording financial transaction

Book keeping and accountancy are often used interchangeably but need to know that these two terms are not identical. Book keeping is an art and accountancy is a science. Book keeping is considered as the base for any accounting. Book keeping is normally done by the junior employees whose responsibility is to maintain various books of accounts. Accountancy starts once the book keeping is completed.