CHAPTER 2 ACCOUNTS

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   ACCOUNTS 

DIFFERENCE BETWEEN BOOK KEEPING VS ACCOUNTING ??

ANSWER :-  

BASIC                 BOOK KEEPING                                          

MEANING       BOOK KEEPING IS AM ART                    

                             OF RECORDING THE                              

                     FINANCIAL TRANSACTIONS                        

                      IN THE BOOK OF ACCOUNTS                       

STAGE             PRIMARY                                                         

OBJECTIVE    TO KEEP SYSTEMATIC RECORD          

WHO PERFORMS       JUNIOR STAFF                               

KNOWLEDGE             REQUIRE LIMITED                         

BASIC                    ACCOUNTING

MEANING         ACCOUNTING IS DEFINED AS

                           ( CSAR)  IN MONETRY TERM

                            THE INFORMATION ABOUT

                             BUSINESS .

STAGE             SECONDARY 

OBJECTIVE          TO AS CERTAIN THE NET RESULT 

WHO PERFORMS      SENIOR STAFF

KNOWLEDGE           REQUIRE HIGHER 

QUALITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION 

ANSWER :-           THERE ARE A FOUR TYPE 

• RELIABILITY  :-    ALWAYES INFORMATION SHOULD BE  TRUE ABOUT  A BUSINESS .

• RELAVANCE :- IT SHOULD CONTAIN AS MUCH INFORMATION AS IS        NECESSARY  FOR THEIR USERS ..

• UNDERSTANDABILITY :- INFORMATION SHOULD BE PRESENTED IN    SUCH A WAY THAT EVERYONE UNDERSTANDS .

• COMPARABILITY  :- ACCOUNTING INFORMATION SHOULD BE            RECORD ON 2 YEARS .