What is accounting
Accounting is the art of recording, classifying and presenting data in a manner that it may be used by other people.
Accounting comes after book keeping
What is book-keeping
Book keeping only refers to the keeping of records in the appropriate books.
Book keeping comes before accounting
Purpose of measuring profit and loss
To determine whether the business is operating in the right manner
To decide policies and measures
Role of accounting in decision making
Accounting provides the business manager all the summarized data to make informed decision.
Accounting showed that there was an increase in costs, so the business would decide to lower costs and adopt more cost effective measures