Accounting & Book-keeping

Question 1

What is book-keeping?

Answer 1

It is the systematic recording of the daily transactions of a business in terms of money

Question 2

What is accounting?

Answer 2

It is a process by which certain methods and procedures are used to prepare,classify,analyze and summarize the financial records of a business in terms

Question 3

How can an accountant use bookkeeping and accounting in their career?

Answer 3

It can be used for decision making in the financial planing of a business.

Question 4

What is the distinction between bookkeeping and accounting?

Answer 4

Bookkeeping involves record keeping whereas accounting uses all the information compiled in the book keeping process so that financial statements can be prepared ,analyze and interpreted

Question 5

What is the purpose of booking keeping and accounting?

Answer 5

1.to ascertain a profit
2.ascertain the value of assets and liabilities
3.to provide financial info about the business
4.to maintain financial control of the business

Question 6

Why is it necessary to keep records of transactions that take place in a business

Answer 6

So that the information can be used by owners,shareholders,government ,management and investors