Final answer:
Accounting refers to the documentation of a business's financial affairs and involves preparing financial statements, while bookkeeping is the systematic recording of financial transactions.
Step-by-step explanation:
Accounting refers to the documentation of the organization's financial affairs, including recording, classifying, and summarizing financial transactions. It involves preparing financial statements and reports, such as balance sheets and income statements, to provide an overview of the financial position and performance of a business.
Bookkeeping refers to the systematic recording of financial transactions. It involves maintaining accurate records of all financial activities, such as sales, purchases, and expenses, in a chronological order. Bookkeeping ensures the accuracy of financial information and provides the necessary data for accounting.
While accounting focuses on the overall financial management of an organization, bookkeeping is an essential part of the accounting process, providing the foundation for accurate and reliable financial reporting.