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Question
Book-keeping is often confused with _____________.
Book-keeping is often confused with _____________.
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Solution
The correct option is D Accounting
Book Keeping and Accountancy are often used interchangeably, but it is not true. These two terms are not identical. Book Keeping is an art but the accountancy is a science. Book keeping is usually done by the junior employees of the organization where he records the transactions in books of accounts i.e. journal and ledger. But information recorded in books does not give any idea about the financial position of the company.
Hence in order to make a judgement regarding the financial position of the concern, the recorded information has to be analysed and interpreted where accountancy comes in the picture.Therefore, this can be said that where book keeping ends, accountancy starts.
Book Keeping and Accountancy are often used interchangeably, but it is not true. These two terms are not identical. Book Keeping is an art but the accountancy is a science. Book keeping is usually done by the junior employees of the organization where he records the transactions in books of accounts i.e. journal and ledger. But information recorded in books does not give any idea about the financial position of the company.
Hence in order to make a judgement regarding the financial position of the concern, the recorded information has to be analysed and interpreted where accountancy comes in the picture.
Therefore, this can be said that where book keeping ends, accountancy starts.
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