Relation of Accounting with other Subjects :
Accounting is related to a number of subjects. Let us consider the relation of Accounting with other subjects.
Accounting and Economics :
An accountant is concerned with the economic problems of only one undertaking, whereas an economist is concerned with the economic problems of an industry and the economy as a whole. Again, as Messrs.Yorston, Smith and Brown have stated, economists and accountants, often, use the same terms to mean different things. For example, the 'profit' according to an economist is not the same thing as the 'profit' according to an accountant. Thus, there are differences between economics and accounting.
However, accounting and Economics are closely related to each other. For example, an accountant is concerned with the economic problems of his business enterprise, which can, be expressed in terms of money, and businessmen take economic decisions about purchase and sale of goods mainly on the basis of financial information provided by accounting. Similarly, most of the statistical data in terms of money used by economists are provided by accounting. So also, for the measurement of national income, accounting is of much help. So, one can say that accounting and economics are closely related with each other. It is for this reason that Messrs. Yorston, Smith and Brown have expressed that it is desirable that the accountants and economists learn more about each other's subject, and there should be reconciliation between accounting and economic concepts.
Accounting and Statistics :
An accountant is mostly concerned with monetary data and, only to some extent, with quantitative data. But a statistician is equally concerned with both quantitative data monetary data. That means, the function of the accountant is limited, whereas the function of the statistician is unlimited.
However, accountants and statisticians perform certain common functions, such as the collection of data, tabulation of data, analysis of data and presentation of data. So, one can definitely say that accounting and Statistics are related to each other.
Accounting and Engineering:
It is not possible for an accountant without adequate knowledge of engineering to provide correct estimate on any capital expenditure proposal involving technical skill. Again, accountants, often, use, in their accounting records, values of machinery, equipments and inventory assessed by engineers. So, one can say that accounting and engineering are closely related with each other. In fact, today, for the efficient functioning of an undertaking, particularly an engineering or a manufacturing undertaking, both the accountant and the engineer must work hand in hand. For this purpose, an accountant should know more of engineering, and an engineer also should know more of accounting.
Accounting and Law :
Accounts are required to be maintained as per the provisions of law. Further, accounts have to be presented in the forms prescribed by law. For instance, the final accounts of companies have to be presented in the forms prescribed by the Companies Act. Again, an accountant is required to satisfy the requirements of tax laws. That means, an adequate knowledge of various laws is essential for an accountant. So, one can conclude that accounting and Law are closely related to each other.
Accounting is related to a number of subjects. Let us consider the relation of Accounting with other subjects.
Accounting and Economics :
An accountant is concerned with the economic problems of only one undertaking, whereas an economist is concerned with the economic problems of an industry and the economy as a whole. Again, as Messrs.Yorston, Smith and Brown have stated, economists and accountants, often, use the same terms to mean different things. For example, the 'profit' according to an economist is not the same thing as the 'profit' according to an accountant. Thus, there are differences between economics and accounting.
However, accounting and Economics are closely related to each other. For example, an accountant is concerned with the economic problems of his business enterprise, which can, be expressed in terms of money, and businessmen take economic decisions about purchase and sale of goods mainly on the basis of financial information provided by accounting. Similarly, most of the statistical data in terms of money used by economists are provided by accounting. So also, for the measurement of national income, accounting is of much help. So, one can say that accounting and economics are closely related with each other. It is for this reason that Messrs. Yorston, Smith and Brown have expressed that it is desirable that the accountants and economists learn more about each other's subject, and there should be reconciliation between accounting and economic concepts.
Accounting and Statistics :
An accountant is mostly concerned with monetary data and, only to some extent, with quantitative data. But a statistician is equally concerned with both quantitative data monetary data. That means, the function of the accountant is limited, whereas the function of the statistician is unlimited.
However, accountants and statisticians perform certain common functions, such as the collection of data, tabulation of data, analysis of data and presentation of data. So, one can definitely say that accounting and Statistics are related to each other.
Accounting and Engineering:
It is not possible for an accountant without adequate knowledge of engineering to provide correct estimate on any capital expenditure proposal involving technical skill. Again, accountants, often, use, in their accounting records, values of machinery, equipments and inventory assessed by engineers. So, one can say that accounting and engineering are closely related with each other. In fact, today, for the efficient functioning of an undertaking, particularly an engineering or a manufacturing undertaking, both the accountant and the engineer must work hand in hand. For this purpose, an accountant should know more of engineering, and an engineer also should know more of accounting.
Accounting and Law :
Accounts are required to be maintained as per the provisions of law. Further, accounts have to be presented in the forms prescribed by law. For instance, the final accounts of companies have to be presented in the forms prescribed by the Companies Act. Again, an accountant is required to satisfy the requirements of tax laws. That means, an adequate knowledge of various laws is essential for an accountant. So, one can conclude that accounting and Law are closely related to each other.
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