Accounting covers:

Correct option is A

Ans. (a)
Accounting primarily involves a data collection system and the reporting of information derived from that system. It focuses on organizing and summarizing financial data for reporting and decision-making. While transaction tracking and financial reporting are critical activities within the broader domain of financial management, the core purpose of accounting is to collect, process, and report data systematically.
Information Booster
1. Primary Functions of Accounting:
· Recording financial transactions.
· Summarizing and interpreting data.
· Preparing financial statements.
2. Data Collection in Accounting:
· Systems like journals, ledgers, and trial balances are used.
· It ensures accuracy and reliability in financial reporting.
3. Key Accounting Standards:
· Followed to ensure transparency and consistency in data reporting.
4. Users of Accounting Information:
· Internal (management) and external (investors, regulators) stakeholders.
Additional Knowledge
· Data Collection System: Forms the foundation of accounting by gathering raw financial data.
· Transaction Tracking: Falls under bookkeeping, which is a subset of accounting.
· Financial Reporting: Prepares comprehensive statements like balance sheets and income statements, typically linked to advanced accounting practices.
Key Points
· Accounting systems provide structured and relevant data for decision-making.
· Tracking transactions and reporting results are specialized applications within the scope of accounting.
· A clear distinction exists between bookkeeping (recording) and financial management (analyzing and using data).