- 20 Marks
Question
a. Explain the differences between the roles of a bookkeeper and an accountant in the accounting process.
b. Explain the various types of accounting and their respective roles in providing relevant information to different users of financial information.
Answer
(a) Differences between the roles of a bookkeeper and an accountant:
- Bookkeeper: Records day-to-day financial transactions, maintains ledgers, reconciles accounts
- Accountant: Analyzes financial data, prepares reports, ensures compliance, advises on strategy
(b) Types of accounting:
- Financial Accounting: Provides info to external users like investors.
- Management Accounting: For internal decision-making.
- Cost Accounting: Controls costs.
- Tax Accounting: Compliance with tax laws.
- Auditing: Verifies accuracy.
- Uploader: Salamat Hamid