GENERAL KNOWLEDGE

Detailed explanation-1: -Auditing is the process of checking the financial statements along with other accounting information of a business entity. Audit is an important term that describes the examination and verification of a company’s financial records. It is to ensure that financial information is represented fairly and accurately.

Detailed explanation-2: -Recording of business transactions in a systematic manner in the books of account is called book-keeping. Book-Keeping is concerned with recording of financial data. This may be defined as. “The art of keeping a permanent record of business transactions is book keeping”.

Detailed explanation-3: -Financial character is the feature of a financial transaction.It mainly involves flow of cash and is measured in the terms of money. You cannot record every transaction in the accounting. For example, only those transactions which involve money and cash flow are recorded. Now this is a financial character.

Detailed explanation-4: -Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and event which are, in part at least, of a financial character and interpreting the results thereof.