Notes on lesson on Book Keeping and Accounting Concept | kullabs.com

Book Keeping and Accounting Concept

Notes

Book-Keeping

Book-keeping is a branch of knowledge, which is concerned with the recording of financial transactions of a business in a set of books systematically in a chronological order as and when they take place with a view to preparing further statements. This note has information about book-keeping, its objectives, functions and importance.

Accounting

Accounting is the process of recording, classifying and summarizing financial transactions of a business in such a manner that the results of its operations and its financial position can be ascertained at the end of a given period, and interpreting and communicating them to the users. This note has information about accounting, its features and scope.

Basic Accounting Concepts and Assumptions

Accounting is related with the recording, classifying and summarizing the financial transactions to know the profitability and financial position of a business. Different types of financial statements are to be prepared on the basis of certain assumptions, concepts, and principles which are known as basic accounting concepts or principles. This note has information about various accounting concepts or principles and a brief explanation of them.