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S.No
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Book-keeping
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Accounting
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1
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It
is the recording phase of an accounting system
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It
is the summarizing phase of an accounting system
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2
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It
s the basis of accounting
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It
s the basis for business language
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3
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Persons
responsible for bookkeeping are called book-keeper
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Persons
responsible for accounting are called accountants
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4
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It
does not require any special skill or knowledge
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It
requires special skill and knowledge
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5
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Personal
judgments of the bookkeeper is not required
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Personal
judgments of the accountant is essential
|
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6
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Financial
statements are not prepared from bookkeeping records
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Financial
statements are prepared from accounting records.
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7
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It
does not give the complete picture of the financial condition of the business
unit
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It
gives the complete e picture of the financial
condition of the business unit
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8
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It
does not provide any information for taking managerial decisions
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It
provides information for taking managerial decisions
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9
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It
has no branch
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It
has several branches, e.g. financial accounting, cost accounting and
management accounting
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S.No Financial accounting Cost and Management accounting 1 It is primarily for external purpose It is primarily for internal purpose 2 It provides information about the financial performance and financial position of the business It provides information of ascertainment of cost to control cost and for decision making about the cost. 3 It classified records, presents and interprets transaction in terms of money It classifies, records, presents and interprets in a significant manner the material, labour and overheads cost 4 It shows the profit or loss of the organization It provides the details of cost and profit of each product, process etc 5 Financial statements are prepared for a definite period, usually a year Its reports and statements are prepared as and when required. ...
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