Define book-keeping, accounting, and accountancy? With the help of the diagram explain the relationship between book-keeping, accounting, and accountancy.
Define book-keeping, accounting, and accountancy? With the help of the diagram explain the relationship between book-keeping, accounting, and accountancy.
Book-keeping
Book-keeping is an art of recording in the books of accounts, the monetary aspect of commercial and financial transactions. It is a part of accounting. It is concerned with identifying, recording and classifying economic transactions and events.
Accounting
Accounting is a wider concept than book-keeping. It starts where book-keeping ends. It is concerned with summarising the economic transactions, analysis, and interpretation of economic transactions and events and communicating the results of final users.
Accountancy
'Accountancy' refers to the entire body of the theoretical knowledge of accounting. It is the theory part of accounting, whereas accounting relates to applying the knowledge of accountancy. Diagrammatically, the relationship can be viewed as:
Book-keeping
Book-keeping is an art of recording in the books of accounts, the monetary aspect of commercial and financial transactions. It is a part of accounting. It is concerned with identifying, recording and classifying economic transactions and events.
Accounting
Accounting is a wider concept than book-keeping. It starts where book-keeping ends. It is concerned with summarising the economic transactions, analysis, and interpretation of economic transactions and events and communicating the results of final users.
Accountancy
'Accountancy' refers to the entire body of the theoretical knowledge of accounting. It is the theory part of accounting, whereas accounting relates to applying the knowledge of accountancy. Diagrammatically, the relationship can be viewed as:
