A Comparison of Bookkeeping and Accounting Indicates That

question 33

Multiple Choice

A comparison of bookkeeping and accounting indicates that

• A) the two are virtually the same in practice.
• B) bookkeeping involves recording financial information, while accounting is concerned with classifying, summarizing, and interpreting this information.
• C) bookkeeping is more useful for small businesses while accounting is more useful for large businesses.
• D) accounting is a subsystem of the process of bookkeeping.

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Definitions:

Supplying Division

The unit or segment within a larger organization responsible for providing materials, products, or services to another division or department.

Transfer Price

The price charged for goods and services transferred between departments or divisions of the same company or between related entities.

Buying Division

A department within a company responsible for purchasing goods, materials, and services required for the business operations.

Negotiated Transfer Price

A transfer price agreed upon by the selling and buying divisions within the same company.