A comparison of bookkeeping and accounting indicates that:
A)The two are virtually the same in practice.
B)Bookkeeping involves recording financial information,while accounting is concerned with classifying,summarizing,and interpreting this information.
C)Bookkeeping is more useful for small businesses while accounting is more useful for large businesses.
D)Accounting is a subsystem of the process of bookkeeping.

Question

Quizplus · Accepted Answer

Bookkeeping and accounting are related but distinct processes. Bookkeeping involves recording financial transactions and maintaining accurate records of financial information. Accounting, on the other hand, takes the information recorded in the books and uses it to classify, summarize, and interpret financial data. Accounting involves analyzing financial information to make strategic decisions, whereas bookkeeping is focused more on accurately recording financial transactions. Therefore, B is the best choice as it clearly explains the difference between bookkeeping and accounting.

A Comparison of Bookkeeping and Accounting Indicates That