Question

Book-keeping is concerned with the ______ of transactions while Accounting is concerned with the _______ of the recorded transactions.

• A. Recording, Summarizing
• B. Summarizing, Recording
• C. Posting, Recording
• D. Summarizing, Posting

Answer 1

The correct option is A Recording, Summarizing

Accounting starts with

-identifying a transaction and then recording in Journal

-then classifying in the ledger

-then summarising in final accounts

-then interpretation through Ratio analysis

-then finally communicating the information to the users of the financial statement.

Thus, the first step is identifying and the last step is communicating the information.