Question

The primary difference between bookkeeping and accounting is that:

• A. Bookkeeping only involves recording transactions while accounting involves recording, analyzing, interpreting, and reporting financial data
• B. Bookkeeping is more analytical than accounting
• C. Accounting only records transactions
• D. Bookkeeping involves decision-making based on reports

Answer 1

Answer:

A. Bookkeeping only involves recording transactions while accounting involves recording, analyzing, interpreting, and reporting financial data

BOOK KEEPING

• The term Book keeping and Accounting terms are different not same.

• According to JR Batliboi, bookkeeping is an art of recording transactions in the journal, classifying and summarising them into the accounts through posting, balancing of accounts and preparation of a trial balance.

Note:

Bookkeeping is the systematic recording process, whereas accounting includes further steps such as analysis and interpretation of financial data.