AFM assignment Q No.

-4

Accounting is a dynamic and applied subject. Even though it is an independent Formatted: Font: (Default) Arial, 12 pt
study, it has relationship with other subjects. The other subjects or disciplines with
which accounting is increasingly seen to interact are as follows;
Accounting & Economics: - Formatted: Font: (Default) Arial, 12 pt, Bold
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The relation of Economics with Accounting is very close. Both are meant to
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maximize wealth & so the economists and accountants are consistent with the
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aspect that capital should be intact when calculating the income. Accounting
provides all required financial information upon which the economic models are
prepared. It is thus to be said that both accounting & economics are connected with
each other.
Accounting & Statistics: - Formatted: Font: (Default) Arial, 12 pt, Bold
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The main object of accounting as well as statistics sciences is to make arithmetical
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figures understandable and logical and to present these in the form of statements
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making them usable to the parties connected. The knowledge of creating tables &
graphs is attained through the discipline of statistics. Accounting uses price indices
which has to do with creating tables, while the interpretation involves making
absolute & relative comparison by means of ratio analysis. Thus for doing all these,
the knowledge of accounting is much needed and so accounting is linked with
statistics as well.
Accounting & law: - Formatted: Font: (Default) Arial, 12 pt, Bold
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Accounting is connected with law, as it operates within a legal environment and thus
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all the transactions are governed on the basis of different acts. Business
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organizations are governed by their respective statues that provide many aspects
pertaining to the preparation of accounts. However, it is likely that accounting
influences law & is also influenced by law. In this way accounting is also related to
law because of many legal aspects and procedures.
Accounting & management: - Formatted: Font: (Default) Arial, 12 pt, Bold
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Management depends entirely on Accounting as information store in making
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decision in financial affairs. Accounting helps management in taking timely decisions,
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interpreting & analyzing overall and information based matters & this helps the
managers to take best & dynamic course of action for their concerns. The success of
management fully depends on accounting information. Thus accounting and
management are closely related to each other.
Accounting & mathematics: - Formatted: Font: (Default) Arial, 12 pt, Bold
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Accounting is the language of business on the other hand mathematics is the
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language of accounting. Accounting expresses all its transactions & events of
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financial changes in the language of mathematics. So mathematics is an
indispensable part of accounting.
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Formatted: English (United States)

By Yogeesh
AFM assignment Q No.-4

Accounting & Computer Science: - Formatted: Font: (Default) Arial, 12 pt, Bold
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In accounting accounts of various transactions are to be recorded & the results are
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to be determined. Manual accounting needs huge time and labor and lacks in
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accuracy. But computerized accounting system saves time & labor with 100%
accuracy. Therefore, the relation between accounting is increasing to solve the
problems of accounting processes.
Accounting & Political Science: - Formatted: Font: (Default) Arial, 12 pt, Bold
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Political science gives directives in achieving welfare for the people of the society as
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a whole. For this reason issues like national income & expenditure, probable income
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from national prospects etc. arise from political science. Keeping proper accounts of
national income, expenditure & providing information in this regard is the task of
accounting. Therefore there exists a close relationship between Accounting &
Political Science.
Accounting & Engineering: - Formatted: Font: (Default) Arial, 12 pt, Bold
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Accounting & engineering jointly work in the process of production & building.
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Special types of plant & machineries are needed in the factories. These plant and
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machineries are made by engineers engaged in engineering work. The estimation
regarding types of goods & quantity of goods to be produced & amount of
expenditure to be incurred in machineries etc. of a concern is to be accounted for.
Function of accountant is to find out the ratio between money invested in plant &
machineries & results arising out of it & present the same to the managers in the
form of statements.
Without the knowledge of engineering an accountant cannot provide accurate
information regarding plant & machineries.
So in the modern age of complex & large scale production the knowledge of
accounting as well as engineering is essential for achieving target by running
business successfully. P

Formatted: English (United States)

By Yogeesh