The art of recording transactions in books of account is known as
Answer Details
The art of recording transactions in books of account is known as bookkeeping.
Bookkeeping is the process of systematically recording financial transactions of a business in a set of books. The books of account contain the records of all the financial transactions, such as sales, purchases, payments, and receipts. These transactions are recorded in a chronological order and are classified into various accounts, such as cash, accounts receivable, accounts payable, inventory, and so on.
The purpose of bookkeeping is to keep an accurate and complete record of a company's financial transactions and to provide information that is useful for decision-making, budgeting, and forecasting. It is a critical component of accounting, which is the process of summarizing, analyzing, and reporting financial information to stakeholders, such as investors, creditors, and regulators.
Debiting and crediting are the basic principles of accounting, which are used to record financial transactions in the books of account. Auditing is the process of examining and verifying the accuracy and completeness of the financial records and reports prepared by the bookkeeper or accountant.