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It is the maintenance of daily record of ALL financial transactions in such manner that it would help in the preparation of suitable information regarding the financial affairs of a business or an individual.
Keeping track of records and creating a summary of financial transactions is called bookkeeping , When this information is produced and displayed in reports for the use of the public outside the company, this process is called financial accounting
Recording and evaluating the financial transaction with accounting proceduresand principles is called financial accounting.
