How does accounting differ from bookkeeping? What will be an ideal re

QUESTION

How does accounting differ from bookkeeping?

What will be an ideal response?

ANSWER

Answer: Bookkeeping is basically the recording of a firm’s financial transactions, while accounting makes use of data recorded in bookkeeping to give financial information that helps people inside and outside a company make good financial decisions.
Explanation: Accounting is the measuring, classifying, analyzing, and communicating of financial information to help people inside and outside a company make good financial decisions. This differs from bookkeeping, which is basically the recording of a firm’s financial transactions.