What is the difference between bookkeeping and accounting, and what are accrued and unaccrued expenses?

Question

Accepted Answer

Bookkeeping focuses on recording financial transactions, while accounting involves analyzing and interpreting financial data.

Bookkeeping: Involves the systematic recording of financial transactions, such as sales and purchases. Example: Recording daily sales in a ledger.
Accounting: Encompasses the broader process of summarizing, analyzing, and reporting financial data. Example: Preparing financial statements like balance sheets.
Accrued Expenses: These are expenses that have been incurred but not yet paid. Example: Salaries owed to employees for work done in the current month but paid in the next.
Unaccrued Expenses: These are expenses that have not yet been incurred or recognized. Example: A utility bill for the next month that has not yet been received.

Interview Questions Asked to Accounts Receivable and Cash Application Specialist at Other Companies