Chapter 1, Problem 5Q

To determine

Bookkeeping:

Bookkeeping is the process of recording financial transactions and other information related to a business on a daily basis. The primary characteristic of bookkeeping is to maintain accurate and updated accounts for each and every transaction that occur in a business. Accuracy is hence, the most important aspect of the bookkeeping process.

Bookkeeping is primarily done to provide information during the preparation of financial statements.

Accounting:

Accounting is the systematic process of identifying, recording, and communicating financial information. Accounting is useful in obtaining important information about a business, such as profit or loss of a business during a particular period, and the financial worth of its assets, liabilities, and owners’ equity.

Accounting provides information related to the resources of a firm, the means used to finance the resources, and the outcomes of the use of the resources.

Whether bookkeeping and accounting are the same.