Bookkeeping Differs From Accounting Bookkeeping Involves Which Part Of The Accounting Process

Bookkeeping differs from accounting in that bookkeeping primarily involves from accounting na at abu dhabi university.

Bookkeeping differs from accounting bookkeeping involves which part of the accounting process. The difference between bookkeeping and accounting lies in their objectives. As far as the scope is of these two processes is concerned accounting is much wider and analytical than bookkeeping. Book keeping is part of the accounting process.

Accounting is the process of recording summarising reporting analysing and interpretation of financial information. Bookkeeping refers mainly to the record keeping aspects of accounting. Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process.

It s essentially the process of recording all the information regarding the transactions and financial activities of a business. The double entry system requires that each transaction must be recorded. Side which increases that account.

Bookkeeping and accounting are usually used as synonyms but both of them have different functions. The key difference between bookkeeping and accounting lies in the fact that bookkeeping keeps a record of all the financial records whereas accounting interprets analyzes and summarizes the financial records. The objective of bookkeeping is to maintain a systematic record of all financial transactions.

The bookkeeping is the base for accounting. On the other hand accounting helps to determine the financial position of a firm. Accounting is the process of summarizing interpreting and communicating financial transactions which were classified in the ledger account as a part of bookkeeping.

Keep in mind that accounting is a much broader term than bookkeeping. The electronic speed of computers and accounting software gives the appearance that many of the bookkeeping and accounting tasks have been eliminated or are occurring simultaneously. The difference between bookkeeping and accounting is as follows bookkeeping is concerned with the recording of financial transactions whereas accounting involves recording classifying and summarizing financial transactions.