Book Keeping is regarded as the step of accounting.

Question

Book Keeping is regarded as the step of accounting.

1. A. Fourth
2. B. Secondary
3. C. Third
4. D. First (Correct answer)

Correct Answer

Option D — First

Detailed Solution & Explanation

The correct answer is First.

Key Points

• Book-keeping is the first (primary/foundational) step of accounting.
• It involves systematically recording financial transactions before they are analysed and reported.

Additional Information

• Book-keeping is the recording stage; accounting adds classifying, summarising, analysing and interpreting; auditing independently verifies the result.
• The accounting cycle runs: journal → ledger → trial balance → adjusting entries → trading and profit & loss account → balance sheet.
• Book-keeping is largely clerical and routine, which is why it is described as the primary or foundational step rather than the whole of accounting.
• The double-entry system, in which every transaction has equal debit and credit, was codified by Luca Pacioli in 1494.