The Accounting Environment

Question 1

What are the steps in accounting?

Answer 1

1. Identification
2. Recording
3. Communication

Question 2

What is the difference between accounting and book keeping?

Answer 2

The difference between accounting and bookkeeping is that accounting involves the entire process of identifying, recording and communicating economic events as well as involving the use of considerable judgement. Whereas bookkeeping usually involves only the recording of economic events (transactions) which is only a singular part of the accounting process

Question 3

Who are the users of Accounting?

Answer 3

Internal (Managers)

Extyernal (investors)