Differentiate between Accounting and Bookkeeping.

Expert Solution

Bookkeeping means activity of keeping the financial books whereas accounting includes recording, classifying and interpreting the financial information.

During accounting process financial statement are being prepared whereas no such statements are prepared in the process of bookkeeping.

Accounting requires some special skills and knowledge about the accounting whereas bookkeeping not required any special skills.

As accounting requires special skills therefore skills regarding analysis of the information is required in accounting whereas no such analysis skills are required in bookkeeping.

Because of accounting the management can take business decision based on the the information gathered in accounting whereas the management cannot take any decision from the information gathered in bookkeeping.

The main objective of the book keeping is to record the financial transaction properly whereas the main objective of accounting is to prepare the financial statement and communicate this statement the relevant authorities such as auditors.

Bookkeeping process can be looked after by any accountant with basic knowledge whether accounting process requires special knowledge and education regarding accounting.

If you find the answer helpful please upvote.

ekkarill92 answered 2 years ago

Explain the relationship between bookkeeping and accounting in terms of accurate financial reporting and analysis

Differentiate between net cash flow and accounting profit.

1. What is the difference between accounting and bookkeeping? Part 1 -Balance Statement 2. What is...

1. What is the difference between accounting and bookkeeping? Part 1 -Balance Statement 2. What is the basic accounting equation? What is the purpose of a balance sheet (what does it show a business person; how is it used)? 3. Why is it that the assets always equals the total of liabilities and owner's equity? Explain this in your own words . 4. Use an example of a person who is buying a house to illustrate why assets always equals...

Define the concept of “Admitted Assets” in Statutory Accounting and differentiate between the accounting for assets...

Define the concept of “Admitted Assets” in Statutory Accounting and differentiate between the accounting for assets under GAAP.

A. Differentiate between accrual accounting and cash basis. Based on the type of business and the...

A. Differentiate between accrual accounting and cash basis. Based on the type of business and the client’s accounting system, what is the impact when revenue is recognized? Which option would you recommend for the client? B. Based on the decision of accrual vs. cash basis, describe when revenue would be recognized on the sale of inventory, and how the accrual reporting differs from cash basis. C. Determine the economic impact on the client’s financial situation. Based on your decision, determine...

Question 4 Differentiate between the following: a. Financial accounting and management accounting b. Accrual and Prepayment. ...

Question 4 Differentiate between the following: a. Financial accounting and management accounting b. Accrual and Prepayment. c. Bad debt and Provision for bad debt.

You are an employee at a full-service bookkeeping and auditing firm called Accounting Solutions. Accounting firms...

You are an employee at a full-service bookkeeping and auditing firm called Accounting Solutions. Accounting firms are often asked to perform consulting services for clients. Your new client, Auto Parts Unlimited, is seeking a loan for an expansion project and their lender has asked about the business control and documentation procedures. Bob, the owner of Auto Parts Unlimited, has asked for your help. You visit Auto Parts Unlimited, talk with employees, and make the following observations: Betty, the purchasing manager,...

Define Capital Rationing in details? and differentiate between accounting vs. Financial break-even?

Differentiate between internal users and external users and explain the examples of the accounting information required.

Cash Basis vs. Accrual Basis Accounting Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis...

Cash Basis vs. Accrual Basis Accounting Differentiate between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting the preferred method for most businesses? The Internal Revenue Service requires all companies with sales over $5,000,000 to use the accrual-basis of accounting for income tax reporting purposes. Why?

Question

Differentiate between Accounting and Bookkeeping.

Solutions

Expert Solution

Related Solutions