BookkeepingVs.Accounting - debit side, and one to the...

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Bookkeeping is the process of systematically recording the financial transactions of a business, so as to show how the transactions relate to each other. Bookkeeping is largely a mechanical process and does not involve any analysis of the financial transactions, but rather the recording of them There are two types of bookkeeping: single entry and double-entry. In single entry bookkeeping, the record of each transaction is carried to either the debit or credit column of a single account. In double-entry bookkeeping, two entries of each transaction are carried to the ledger: one to the
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Unformatted text preview: debit side, and one to the credit side, of the corresponding account. Accounting is the systematic recording, reporting, and analysis of financial transactions of a business. As bookkeeping involves making a financial record of business transactions, it is true to say that the role of bookkeeping is encompassed within the scope of accounting, and the bookkeeping system used by a business would form part of the accounting system. Accounting also includes the preparation of statements concerning assets, liabilities and the operating results of a business....
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This note was uploaded on 06/06/2011 for the course ECON 380 taught by Professor Price during the Spring '11 term at Brigham Young University, Hawaii.

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