Nonprofit Accounting Question:
Download Questions PDF

Explain the difference between bookkeeping and accounting?


Bookkeepers are responsible for maintaining the "business checkbook", much like a personal checkbook. They record routine money transactions like customer payments into a "cash receipts journal" and checks to vendors into a "cash disbursement journal." They also process payroll. At month end they transfer or "post", the "journal" totals to the "general ledger" in preparation for financial statements prepared by the accountant.

Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly financial statements and tax returns at year-end. Accountants may also prepare budgets for management and loan proposals for bankers; and perform cost analysis for the company's products or services.

Download Nonprofit Accounting Interview Questions And Answers PDF

Previous QuestionNext Question
Define offset accounting?What is responsibility accounting?