Commercial Applications
Book keeping is a part of accounting, therefore its scope is …………… where as scope of accounting is ……………
- Wider, narrow
- Narrow, wider
- More, less
- None of these
Answer
Narrow, wider
Reason — Book-keeping is concerned only with identifying, measuring, recording and classifying financial transactions, so its scope is narrow. Accounting, on the other hand, is a wider term as it also includes summarising, interpreting and communicating the recorded information to interested parties.
Related Questions
…………… is the art and science of recording transactions while …………… is the art and science of recording, classifying and summarising transactions.
- Book keeping, accounting
- Accounting, book keeping
- Financial recording, accounting
- Accounting, journalising
Which of the following is/are correct statement(s)?
Statement 1: The Money Measurement Concept allows for the recording of all significant events, irrespective of their monetary value.
Statement 2: The Dual Aspect Principle ensures that every financial transaction is recorded twice in the accounting records.
- Only Statement 1 is correct
- Only Statement 2 is correct
- Both Statements 1 and 2 are correct
- Both Statements 1 and 2 are false
Which of these is not a purpose of financial recordings?
- Ascertaining financial position
- Making accounting information available to stakeholders
- Journal
- None of these
The accounting cycle consists of
- Journal
- Ledger
- Trial balance
- All of these