1. What is the difference between a bookkeeper and an accountant?
Difference Between a Bookkeeper and an Accountant:
A bookkeeper is responsible for recording day-to-day financial transactions, maintaining ledgers, and ensuring accuracy. An accountant, on the other hand, interprets and analyzes financial data, prepares financial statements, and offers strategic financial advice.
2. What is the difference between tax and accounting?
Difference Between Tax and Accounting:
Accounting involves the overall financial management of a business, including bookkeeping, financial reporting, and analysis. Tax, specifically tax accounting, focuses on compliance with tax regulations, minimizing tax liabilities, and ensuring accurate filing of tax returns.
3. What are the golden rules of accounting?
Golden Rules of Accounting:
The golden rules of accounting are principles that guide the recording of financial transactions. They are:
Debit the receiver, credit the giver (or vice versa)
Debit what comes in, credit what goes out (or vice versa)
Debit expenses and losses, credit income and gains (or vice versa)
4. What are the three basic rules of accounting?
The three basic rules of accounting are:
Assets = Liabilities + Equity: The accounting equation that must always balance.
Debit and Credit: Every transaction involves a debit entry and a corresponding credit entry.
Double-Entry System: Each transaction affects at least two accounts, with debits and credits balancing.
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