What is Bookkeeping/Accounting?

Question 1

What is the definition of Bookkeeping?

Answer 1

Bookkeeping refers to the process of gathering, organising, storing and retrieving the financial informationn base of an entity

Question 2

What are the basic purposes of a bookkeeper?

Answer 2

1) Simplifying the day-to-day operations of the entity
2) Preparing financial statements, tax returns, and internal reports to supervisors

Question 3

What is the definition of accounting?

Answer 3

Designing the bookkeeping system, establishing controls to make sure the system is working well and analysing and confirming the recorded information.

Question 4

What is the responsibilities of an accounting department?

Answer 4

1) Cash collection
2) Cash payments (disbursements)
3) Procurement and inventory
4) Property accounting

Question 5

What is Financial Accounting?

Answer 5

Financial accounting is the recording and presentation of business transactions in order to supply information to owners of a business on the performance of their investment.

Question 6

What is managerial accounting?

Answer 6

Managerial accounting is the process of identification, measurement, accumulation and communication of financial information.