Unit 3 Reading Activities Plus Questions

Read the following text and then complete the activities that follow.


Bookkeeping is the foundation of accounting and is just as, if not even more important than some of the more 'glamorous' accounting work. So why are bookkeepers seen as being less important to the success of an accounting department than accountants? Well to get the answer to this, it is important to understand what exactly bookkeeping is.

Bookkeeping within a business is basically the recording of any financial transactions. These transactions include purchases, sales, receipts and payments- in fact just about every financial transaction.

A lot of people think that bookkeeping and accounting is the same thing, but this is wrong. The confusion comes from the fact that bookkeeping is an element of the accounting process. Accountants create reports from the financial transactions, which were recorded, and file the appropriate forms with the government. But it is the bookkeeper who provides the accountant with the source information which these reports are based on. So without the bookkeeper the accountant would be forced to spend a great amount of time recording every transaction.


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Quiz: Reading Questions

1. All income must be stated in the return.
2. An incorrectly stated expenditure is a liability.
3. Nominal codes are used with double entry bookkeeping and T-accounts.
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