Notes Unit-1 Financial Accounting-1

Topic : Unit-1, Meaning and Scope of Accounting BBA & B.
Com Semester : First
Subject Financial Accounting

Course BBA and B.Com (H)
Semester First
Topic Unit- 1 : Meaning and scope of accounting
The accountancy is the gift of limited human memory which is replaced by a standard system of
recording the business transactions and events.
The utility of the system is further enhanced to simply recording to many applications of
analysis on the recorded accounting data.
MEANING OF ACCOUNTING
The committee on Terminology set up by the American Institute of Certified

Public Accountants formulated the following definition in 1961:
“Accounting is the art of recording, classifying, and summarizing in a

significant manner and in terms of money, transactions and events which are,
in part at least, of a financial character, and interpreting the result thereof.”
As per this definition, accounting is simply an art of record keeping. Every

good record keeping system includes suitable classification of transactions
and events as well as their summarization for ready reference. Essentially the
transactions and events are to be measured in terms of money. Measurement
in terms of money means measuring at the ruling currency of a country, for
example, rupee in India, dollar in the U.S.A. The transactions and events must
have at least in part, financial characteristics. The inauguration of a new
branch of a bank is an event without having financial character, while the
business disposed of by the branch is an event having financial character.
Accounting also interprets the recorded, classified and summarized
transactions and events.
A widely accepted definition of accounting is given by the American

Accounting Association in 1966 which treated accounting as “The process of
Page 1 of 23 By : Nakul Anand

Topic : Unit-1, Meaning and Scope of Accounting BBA & B.Com Semester : First
identifying, measuring and communicating economic information to permit

informed judgments and decisions by the users of accounts.”
USERS OF ACCOUNTS
AND
THEIR INFORMATION NEEDS
Generally users of accounts are classified into two categories,
(a) Internal management and
(b) Outsiders.
Management accounting is concerned with identifying information

requirements as well as methods of providing such information to

management. Information requirements of the outside users are generally

served by financial statements. External users are of seven categories:
(i) Investors: They provide risk capital to the business. They information to
assess whether to buy, hold or sell their investment. Also they are
interested to know the ability of the business to survive, prosper and to
pay dividend. In non-corporate sector where ownership and management
are not essentially separated, the owner(s) still need(s) information about
performance of the business and its financial position to decide whether to
continue or shut down.
(ii) Employee: Employees are interested to know the stability and
continuity and growth of the enterprise and its ability to provide
remuneration, retirement and other benefits and to enhance
employment opportunities.
(iii) Lenders: They are interested to know whether their loan-principal
and interest will be paid when due. Financial statements comment on
the profitability and liquidity of the firm and thus is very useful to the
lenders. They are the proof of firm’s liquidity.
(iv) Suppliers and other creditors: They are also interested to know the
ability of the enterprise to pay their dues. Sometimes, they also
become interested in long term continuation of the enterprise if their
existence becomes dependent on the survival of that business.
Suppose, small ancillary units supply their products to a big
enterprise, if the big enterprise collapses, the fate of the small units
also become sealed.
(v) Customers : Customers are also concerned with the stability and
profitability of the enterprise because their functioning is more or
less dependent in a vertical chain, suppose, a company produces
some chemicals used by pharmaceutical companies. It supplies
chemicals on three month’s credit. If all of a sudden it faces some
trouble and is unable to supply the chemical, the customers will also
be in trouble.

(vi) Governments and their agencies : They regulate the functioning of

business enterprises for public good, allocate scarce resources
among competing enterprises, control prices, charge excise duties
and taxes, and so they have continued interest in the business
enterprise.
(vii) Public : The public at large is interested in the functioning of
enterprise because it may make a substantial contribution to the
local economy in many ways including the number of people
employed and their patronage to local suppliers.
Thus the aim of financial accounting is to provide financial information to the

various user groups to permit informed judgments and decisions. Various
users groups may have diversified interests, either conflicting or
complementary but it is not possible to provide information separately to all
such user groups. Instead financial accounting aims at providing general
purpose financial statements that may be used by all. In India, financial
statements mean Profit and Loss Account, Balance Sheet and Schedules and
notes forming part thereof. Profit and Loss Account gives information
regarding profit earned or loss sustained by an enterprise during a period
while the Balance Sheet provides information regarding the financial position
of the enterprise at the end of the period.

FUNCTIONS OBJECTIVES OF ACCOUNTING DATA
The main functions of accounting data are as follows :
(a) Measurement : Measurement of past performance of the

accounting entity and depicting its current financial position;
(b) Forecasting : Forecasting future performance as well as financial

position using past data;
(c)Decision making : Providing relevant information to the users of
accounts to aid decision making;
(d) Comparison & Evaluation : Assessing performance achieved in
relation to targets and disclosing information regarding accounting
policies and liabilities as these have a role in predicting comparing and
evaluating the financial results.
(e) Control : Identifying weaknesses of the operational system and
feeding back the effectiveness of measures adopted to check such
weaknesses;
(f) Stewardship : Accounting for the users of owner’s funds wherein the
management and owners are separated; (for example, Public Limited
Companies).

(g) Government Regulation and Taxation : Providing necessary

information for government to exercise control on the entity as well as
collection for tax revenue.

Process of Accounting
BOOK-KEEPING, ACCOUNTING AND ACCOUNTANCY
Book-Keeping – It is mainly concerned with record keeping or maintenance of

books of accounts. The maintenance of books of accounts includes the
following four activities :
(a) Identifying the transactions of financial nature from amongst the

various transaction.
(b) Measuring the identified transactions in the books of original
entry.
(c)Recording the identified transactions in the books of original entry.
(d) Classifying them into ledger.
The book-keeping function is routine and clerical in nature and can be

performed by persons having limited knowledge of accounting. At present this
function is increasingly done by computers.

Accounting – Accounting starts where book-keeping ends. It includes the

following activities:
i. Summarising the classified transactions in the form of Profit & Loss

Account and Balance Sheet etc.
ii. Analyzing and interpreting the summarized results. In other words,
drawing the meaningful information from Profit & Loss Account and
Balance Sheet etc.
iii. Communicating the information to the interested parties.
Accountancy – It refers to a systematic knowledge of accounting concerned

with the principles and techniques which are applied in accounting. It tells us
how to prepare the books of accounts, how to summarize the accounting
information and how to communicate it to the interested parties.

Distinction between Book-keeping and Accounting

Book-keeping differs from accounting in the following respects :
Basic of Distinction Book-keeping Accounting

1. Scope Book-keeping includes : Accounting in addition to
(a) Identifying Book-keeping includes:
the transactions of (a) Summarising
financial nature; the classified
(b) Measuring transactions;
the identified (b) Analysing and
transactions in interpreting the
terms of money; summarised results;
(c)Recording the and
measured (c)Communicating the
transactions; and results to parties
(d) Classifying interested in them.
them into ledger.
2. Stage Book-keeping is primary It is the secondary stage.
stage. Accounting starts where
Book-keeping ends.
3. Objective The main objective of Its main objective is to

Book-keeping is toascertain the net results and
maintain systematic financial position of the
records of transactions ofbusiness and to
Financial nature. communicate them to
interested parties.
4. Nature of Job The Book-keeping The Accounting function is
function is routine and analytical in nature.
clerical in nature.
5. Who The Book-keeping The Accounting function is

Performs function is performed by performed by senior staff.
junior staff.
6. Knowledge It can be performed by It is performed by persons
Level persons having limited having higher level of
level of knowledge. knowledge than that of

Book-keeper.
7. Analytical The Book-keeper is not The Accountant is required

Skill required to possess to possess analytical skill.
analytical skill.
Book-keeping is the art of recording pecuniary or business transactions in a

regular and systematic manner.

Types of Book
keeping
Single entry
system
Double entry
System
This recording of transactions may be done according to any of the following
two systems:
1. Single Entry System. An incomplete double entry system can be termed

as a single entry system. According to Kohler, “It is system of book-
keeping in which as a rule only records of cash and personal accounts
are maintained. It is always incomplete double entry, varying with
circumstances.” This system has been developed by some business
houses, who, for their conveniences, keep only some essential records.
Since all records are not kept, the system is not reliable and can be used
only for some essential records. Since all records are not kept, the
system is not reliable and can be used only by small business firms.
2. Double Entry System. The system of ‘double entry’ book-keeping, which
is believed to have originated with the Venetian merchants of the
fifteenth century, is the only system of recording the two-fold aspect of
the transaction. The system recognizes that every transaction has a two-
fold effect. If some one receives something then either some other
person must have given it, or the first mentioned person must have lost
something, or some service, etc., must have been rendered by him.

Objectives of Accounting
1. To Maintain accounting records

2. To calculate the results of operations
3. To ascertain financial position
4. To communicate information to its users.
Information provided by accounting
1. Information about financial transactions and events,

a. Financial performance
b. Financial Position
c. Cash Flows
2. Information about cost of the product, function, operation or
department
3. Information related to planning and controlling.
4. Information related to social impact of the business transactions
5. Information related to ecology
6. Information related to human resource of the organization.
BRANCHES OF ACCOUNTING
1) Financial Accounting :- The main purpose of this branch of accounting is

to record the business transactions in a systematic manner, to ascertain
the profit or loss of the accounting period by preparing a Profit & Loss
Account and to present the financial position of the business by
preparing a Balance Sheet. This branch of accounting provides
information required by the management and various other interested
parties.
2) Cost Accounting :- The main purpose of cost accounting is to ascertain
the total cost and per unit cost of goods produced and services rendered
by a business. It also estimates the cost in advance and helps the
management in exercising strict control over cost.

3) Management Accounting :- The main purpose of management accounting

is to present the accounting information in such a way as to assist the
management in planning and controlling the operations of a business.
The management accountant uses various techniques and concepts to
make the accounting data more useful for managerial decision making.
These techniques includes ratio analysis, budgetary control, fund
statement, cash flow statement etc.
4) Tax Accounting :- The branch of accounting which is used for tax
purposes is called Tax Accounting. Income tax and Sales tax are
computed on the basis of this accounting.
5) Social Responsibility Accounting :- The social provides the infrastructure
and the facilities without which business cannot operate at all. Hence the
business also has a responsibility to the society. There is a growing
demand for reports on activities which reflect the contribution of an
enterprise to the society. Social responsibility accounting is the process
of identifying, measuring and communicating the contribution of a
business to the society. The contribution of a business to the society
consist of providing employment to under-privileged, providing financial
and manpower support for public programmers’, environment
contribution, product safety, product durability, customer satisfaction
etc. In social responsibility accounting techniques have been developed
for measuring the cost of these contributions and the benefit to the
society.

Branches of
Accounting
Financial
Accounting
Cost Accounting
Management
Accounting
Tax Accounting
Social Responsibility
Accounting
LIMITATION OF ACCOUNTING
1) Influenced by Personal Judgments :- Accounting is as yet an exact

science and accountant has to exercise his personal judgement in
respect of various items. For example, it is extremely difficult to predict
with any degree of accuracy the actual useful life of an asset which is
needed for calculating depreciation. The same is true about method of
valuation of stock and making provision for doubtful debts.

2) Based on Accounting Concepts and Conventions :- Accounts are

prepared on the basis of a number of accounting concepts and
conventions. Hence, the profitability and the financial position disclosed
by it may not be realistic.
3) Incomplete Information :- Accounting statements provide only the
incomplete information because the actual profit or loss of a business
can be known only when the business is closed down.
4) Omission of Qualitative Information :- Accounts contain only those
information which can be expressed in terms of money. Qualitative
aspects of business units are completely omitted from the books as
these cannot be expressed in monetary terms. Thus, changes in
management, reputation of the business, cordial management-labour
relations, firm’s ability to develop new products, efficiency of
management, satisfaction of firm’s customers etc.
5) Based on Historical Costs :- Accounts are prepared on the basis of
historical costs (i.e., the original costs) and as such the figures given
undervalued in many cases particularly land and building. The outcome
of this practice is that balance sheet values of assets are not helpful in
estimating the true financial position of the business.
6) Affected by Window Dressing :- Window dressing refers to the practice
of manipulating accounts, so that the financial statements may disclose
a more favorable position than the actual position.
7) Unsuitable for Forecasting :- Financial Accounts are only a record of past
events. Continuous changes take place in the demand of the product,
policies adopted by the firm, the position of competition etc.
ACCOUNTING AND OTHER DISCIPLINES
Accounting is closely related to many other disciplines and thus to acquire a

good knowledge in accounting one should be conversant with the relevant
portions of such disciplines. In many cases they overlap accounting.
Accountant should have working knowledge of related disciplines so that he
can understand such overlapping areas and apply the knowledge of other
disciplines in his work wherever possible, or he can take the expert advice.

Accounting and Economic : Economics is viewed as a science of rational

decision making about the use of scarce resources. It is concerned with the
analysis of efficient use of scarce resources for satisfying human wants. This
may be in the case of single firm or may be country as a whole.
Accounting provide data to the user to

permit judgement and decisions about proper utilization of firms resources. It
overlaps economics in many respect. It contribute a lot in improving the
management decision making process. But, economic theories influenced the
development of the decision making tools used in accounting.
However, there exists a wide gulf between economists’ and accountants’

concepts of income and capital. Accountants got the ideas of value, income and
capital maintenance from economists, but brushed suitably to make them
usable in practical circumstances. Accountants developed the valuation,
measurement and decision making techniques which may owe to the
economic theorems for origin but these are moulded in the work
environment and suitably tempered with reference to relevance, verifiability,
freedom from bias, timeliness, comparability, reliability and
understandability.
An example may be given to explain the nexus between accounting and

economics. Economists think that value of an asset is the present value of all
future earnings which can be derived from such assets. Now think about a
plant whose working life is more than one hundred years. How can you
estimate future stream of earnings? So accountants developed the workable
valuation base – the acquisition cost i.e., the price paid to acquire the assets.
Take another example : Economists classify costs as fixed and variable; but
they are very sensitive about the cost behavior pattern. That is to say, they do
not accept that variable costs vary in direct proportion to revenue. Truly
speaking, the linear relationship between variable costs and revenue is a
myth. It is not easy to establish the exact functional relationship between
variable cost and sales. So, an accountant accepts the linear relationship while

finding out break-even point. There are many other examples of such type of
acclimatization of economic thoughts in the practical decision environment.
At macro-level, accounting provides the data base over which the economic
decision models have been developed; micro-level data arranged by the
accounting system is summed up to get macro-level data base.
Non-overlapping zones of accounting are not negligible. Development of the

Systems of recording, classifying and summarizing transactions and events,
harmonizing the systems by the uniform rules and communicating the data is
essentially s non-overlapping area of accounting.
Accounting and Statistics : The use of statistics in accounting can be

appreciated better in the context of the nature of accounting records.
Accounting information is very precise, it is exact to the last paisa. But, for
decision making purposes such precision is not necessary and hence, the
statistical approximations are sought.
In accounts, all values are important individually because they relate to

business transactions. As against this, statistics is concerned with the typical
value, behavior or trend over a period of time or the degree of valuation over
a series of observations. Therefore, wherever a need arises for only broad
generalizations or the average of relationships, statistical methods have to be
applied in accounting data.
Further, in accountancy, the classification of assets and liabilities as well as

the heads of income and expenditure has been done as per the needs of
financial recording to ascertain financial results of various operations. Other
types of classification like the geographical and historical ones and ad hoc
classification are done depending on the purpose to make such classification
meaningful.
Accounting records generally take a short-term view of events and are

confined to a year while statistical analysis is more useful if a longer view is
taken for the purpose. For example, to fit the trend line a longer period will be

required. However, statistical methods do use past accounting records

maintained on a consistent basis.
Accounting records are based on historical costs of permanent assets, while

the current assets are automatically valued at the current assets are
automatically valued at the current values. This creates some anomalous
situations when prices are not stable over a period of time. The new methods
of inflation accounting are an attempt to correct this situation. The correction
of values is made on the basis of the current purchasing power of money or
the current value of the concerned assets revalued from the data of purchase
till the day of recording, charging depreciation on the current value, so that
the present value of the asset is in keeping with the current value of money.
All this would require the use of price indices or the price deflators which are
based on statistical calculations of price changes.
The functional relations showing mathematical relations of one variable with

one or more other variables are based on statistical work. These relations are
used widely in making cost or price estimates future values assigned to the
given independent variables. For example, given the functional relation of
total cost to the price of an input, the effect of charges in future prices on the
cost of production can be calculated.
In accountancy, a number of financial and other ratios are based on statistical

methods, which help in averaging them over a period of time. Several
accounting and financial calculations are based on statistical formulae.
Statistical methods are helpful in developing accounting data and in their

interpretation. For example, time series and cross-sectional comparison of
accounting data is based on statistical techniques. Regression analysis is most
useful in forecasting, budgeting and cost control; significance tests can be used
in the analysis of budget and standard cost variances. Now-a-days multiple
discriminant analysis is popularly used to identify symptoms of sickness of a
business firm. Therefore, the study and application of statistical methods
would add extra edge to the accounting data.

Accounting and Mathematics : Double Entry book-keeping can be converted in

algebraic form; in fact the first known book on this subject was part of a
treatise on algebra.
Knowledge of arithmetic and algebra is a pre-requisite for accounting

computations and measurements. Calculations of interest and annuity are the
examples of such fundamental uses. While computing depreciation, finding
out installments in hire-purchase and installments payment transactions,
calculating amount to be set aside for repayment of loan and replacement of
assets and setting lease rentals, mathematical techniques are frequently used.
Accounting data are also presents in ratio form.
With the advent of the computer, mathematics is becoming a vital part of

accounting. Instead of writing Accounts in traditional fashion as will be
explained from section 2, the transactions and events can be recorded in the
matrix form and the rules of matrix algebra can be applied for classifying and
summarizing data.
Now-a-days statistics and econometric models are largely used for developing
decision models for the users of accounts. Also, Operations Research
Techniques provides lot of decision models. Since accounting is meant for
providing information to the users, to be effective, accounting data should
feed the information requirements of such statistical, econometric and
operations research models. Understanding mathematics has become a must
to grasp the decision models framed by statisticians, econometricians and the
O. R. experts.
Presently graphs and charts are being extensively used for communicating
accounting information. In addition to statistical knowledge, knowledge in
geometry and trigonometry seems to be essential to have a better
understanding about the accounting communications system.
Accounting and Law : An economic entity operates within a legal environment.

All transactions with suppliers and customers are governed by the Contract
Act, the Sale of Goods Act, the Negotiable Instruments Act, etc. The entity itself

is created and controlled by laws. For example, a partnership business is

controlled by Partnership Act. A company is created by the Companies Act and
also controlled by Companies Act.
Similarly, every country has a set of economic, fiscal and labour laws.
Transactions and events are always guided by laws of the land. Very often the
accounting system to be followed has been prescribed by the law. For
example, the Companies Act has prescribed the format of financial
statements.
Banking, insurance and electric supply undertakings also have to product of

developments in accounting knowledge. That is to say, a legislation about
accounting system cannot be enacted unless there is a corresponding
development in the accounting discipline. In that way accounting influences
law and is also influenced by law.
Accounting and Management : Management is a broad occupational field

which comprises many functions and encompasses application of many
disciplines including those mentioned above. Accountants are well placed in
the management and play a key role in the management team. A large portion
of accounting information is prepared for management decision making.
Although management relies on other data sources, accounting data are used
as basic source documents. In the management team, an accountant is in a
better position to understand and use such data. In other words, since an
accountant plays an active role in management, he understand the data
requirements. So the accounting system can be moulded to serve the
management purpose. In Chart 1 it has been shown that Management
Accounting processes accounting data for management decision making. This
indicates the linkage between management and accounting. Accounting is an
essential service function of management.
ROLE OF ACCOUNTANT
Accountants are the persons who practice the art of accounting. The
Accounting System and the Accountants who maintain it, provide useful

services to the society. Accountants can broadly be classified into two

categories.,
1. Accountants in Public Practice

2. Accountants in Employment.
Accountants in Public Practice
Accountants in public practice offer their services for conducting financial

audit, cost audit, designing of accounting system and rendering other
professional services for a fee. Such accountants are usually members of
professional bodies. In our country there are two recognized professional
bodies for this purpose. They are (i) the Institute of Chartered Accountants of
India and (ii) the Institute of Cost and Works Accountants of India. The
accountants in public practice are also known as professional accountants.
Accountants in Employment
These are accountants who are employed in non-business entities or business

entities. Non-business entities are a diverse set of organizations including
Educational Institutions, Government, Churches, Museums, Hospitals, etc.
Their object is not to earn profit. The accountants employed by business
entities are frequently called Management Accountants since they report to,
and are the part of, the entity’s management.
Accountants’ Services
1. Maintenance of Books of Accounts.

2. Auditing of Accounts.
3. Taxation.
4. Financial Services.

ACCOUNTING EQUATION
The system of double entry system of book-keeping can very well be

explained by the “accounting equation” given below:
Assets = Equities
The properties owned by business are called ‘assets’. The rights to the
properties are called ‘Equities’. Equities may be sub-divided into two principal
types : the rights of the creditors and the rights of the owners. The equity of
creditors represents debts of the business and are called liabilities. The equity
of the owner is called capital, or proprietorship or owner’s equity. Thus :
Assets = Liabilities + Capital
Assets – Liabilities = Capital .

Maharaja Agrasen Institute of Management Studies
Assignment Unit 1 Financial Accounting
Answer the following questions. Each carrying 10 Marks.
1. Define accounting. Who are the users of accounting? State briefly the
information needs of the users of accounts.
2. What are the sub-fields of accounting? Distinguish between the various
sub-fields.
3. Discuss briefly the relationship of accounting with (i) Economic, (ii)
Statistics, (iii) Mathematics, (iv) Law, (v) Management.
4. State whether the following statements are true or false. Also give
reasons in support of your answer.
(a) Accounting s an art.
(b) Accounting means recording transactions and events, not their
interpretation.
(c)Sub-fields of accounting are back-keeping, financial accounting and
management accounting.
(d) Knowledge of statistics helps to interpret accounting data more
meaningfully.
(e) Knowledge of mathematics is pre-requisite of learning accounting.
5. Discuss the limitations which must be kept in mind while evaluating the
Financial Statements.

Notes Unit-1 Financial Accounting-1

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Topic : Unit-1, Meaning and Scope of Accounting BBA & B.

Com Semester : First

Subject Financial Accounting

The committee on Terminology set up by the American Institute of Certified

“Accounting is the art of recording, classifying, and summarizing in a

As per this definition, accounting is simply an art of record keeping. Every

A widely accepted definition of accounting is given by the American

Page 1 of 23 By : Nakul Anand

identifying, measuring and communicating economic information to permit

THEIR INFORMATION NEEDS

Generally users of accounts are classified into two categories,

(a) Internal management and

Management accounting is concerned with identifying information

Page 2 of 23 By : Nakul Anand

management. Information requirements of the outside users are generally

Page 3 of 23 By : Nakul Anand

(vi) Governments and their agencies : They regulate the functioning of

Thus the aim of financial accounting is to provide financial information to the

Page 4 of 23 By : Nakul Anand

FUNCTIONS OBJECTIVES OF ACCOUNTING DATA

The main functions of accounting data are as follows :

(a) Measurement : Measurement of past performance of the

(b) Forecasting : Forecasting future performance as well as financial

Page 5 of 23 By : Nakul Anand

(g) Government Regulation and Taxation : Providing necessary

Page 6 of 23 By : Nakul Anand

BOOK-KEEPING, ACCOUNTING AND ACCOUNTANCY

Book-Keeping – It is mainly concerned with record keeping or maintenance of

(a) Identifying the transactions of financial nature from amongst the

The book-keeping function is routine and clerical in nature and can be

Page 7 of 23 By : Nakul Anand

Accounting – Accounting starts where book-keeping ends. It includes the

i. Summarising the classified transactions in the form of Profit & Loss

Accountancy – It refers to a systematic knowledge of accounting concerned

Page 8 of 23 By : Nakul Anand

Distinction between Book-keeping and Accounting

Basic of Distinction Book-keeping Accounting

3. Objective The main objective of Its main objective is to

5. Who The Book-keeping The Accounting function is

Page 9 of 23 By : Nakul Anand

7. Analytical The Book-keeper is not The Accountant is required

Book-keeping is the art of recording pecuniary or business transactions in a

Page 10 of 23 By : Nakul Anand

1. Single Entry System. An incomplete double entry system can be termed

Page 11 of 23 By : Nakul Anand

1. To Maintain accounting records

Information provided by accounting

1. Information about financial transactions and events,

1) Financial Accounting :- The main purpose of this branch of accounting is

Page 12 of 23 By : Nakul Anand

3) Management Accounting :- The main purpose of management accounting

Page 13 of 23 By : Nakul Anand

1) Influenced by Personal Judgments :- Accounting is as yet an exact

Page 14 of 23 By : Nakul Anand

2) Based on Accounting Concepts and Conventions :- Accounts are

ACCOUNTING AND OTHER DISCIPLINES

Accounting is closely related to many other disciplines and thus to acquire a

Page 15 of 23 By : Nakul Anand

Accounting and Economic : Economics is viewed as a science of rational

Accounting provide data to the user to

However, there exists a wide gulf between economists’ and accountants’

An example may be given to explain the nexus between accounting and

Page 16 of 23 By : Nakul Anand