Relationship of Accounting with Other Subjects
The scope of accounting is currently very wide. While performing its functions, accounting has established relationships with a number of subjects.
The following are some of the subjects that accounting relates on:
- Management
- Economics
- Mathematics
- Computer Science
- Statistics
- Law
- Political science
- Engineering
The following is a discussion of the relationship of accounting with other subjects:
1.Accounting and Management:
Accounting and management are inextricably intertwined. Since accounting is where information is kept and decisions in financial matters are taken, management is fully dependent on it.
Accounting offers a broad variety of financial details for project planning and execution in a corporation. As a result, management will make confident decisions about project preparation and execution.
2. Accounting and Economics:
The two disciplines of economics and accounting are inextricably linked. Economics is the branch of science dealing with human activities that aim to satisfy demand with limited resources.
Economics studies how people earn and spend money, as well as how buyers and sellers act in various situations.
Accounting, on the other hand, documents monetary transactions of income and expenditure and offers necessary and accurate information to buyers and sellers in order for them to make decisions.
The action of buyers and sellers as a whole is studied in economics. Accounting, on the other hand, offers all relevant financial information to individual buyers and sellers in order for them to make economic decisions. As a consequence, these two topics are connected.
The idea of social sciences is being applied in this perspective to bring about a convergence between the principles of economics and accounting.
3. Accounting and Mathematics:
Accounting and mathematics have a lot in common.
The language of business is accounting. Mathematics, on the other hand, is the language in which divisions of arithmetic are applied.
Accounting uses mathematics to express all of the transactions and events involving financial adjustments.
4. Accounting and Computer Science:
Accounting and computer science have a good and fruitful relationship.
The word “computer” comes from the word “compute.” The word “compute” means “to count,” and the word “computer” means “to counter.”
In a matter of seconds, a computer can solve mathematical problems involving millions or even billions of numbers, and these can be saved as well.
Accounts of different transactions must be reported in accounting, and the outcomes must be calculated. It takes a lot of time and effort, and even then, accounting accuracy cannot be assured.
Many of these big obstacles have been removed by the computer. Since all types of information and data relating to transactions are stored in a computer as part of a definite table and software, reliable accounting can be prepared in a short amount of time. It saves time and effort.
5. Accounting and Statistics:
The fields of accounting and statistics are inextricably connected.
The main aim of these two sciences is to make arithmetical figures understandable and rational, as well as to present them in the form of statements that can be used by the owner, directors, and others.
It facilitates the planning and decision-making process.
6. Accounting and Law:
Accounting and law are closely linked because of the prevalent rules of a land control exchange and commerce.
As a result, the accountant and accounts officer must have a thorough understanding of partnership law, corporation law, tax law, industrial law, cooperative law, and other applicable laws.
Since the books and records of the company are maintained in compliance with agreed accounting standards and applicable laws.
7. Accounting and Political Science:
The primary aim of political science is to uphold law and order in order to preserve the rule of law in society.
Political science provides guidelines for achieving overall welfare for society’s people. As a consequence, political science is concerned with concerns such as national income and expenditure, national development expenditure, and possible income from national prospects, among others.
Accounting’s duties include keeping accurate records of national income and expenditure, as well as providing information in this regard.
8. Accounting and Engineering:
Accounting and engineering are two of the most important branches of modern social sciences. These two subjects collaborate in the manufacturing and construction process.
An accountant who lacks engineering expertise would be unable to provide reliable information about plants and machinery.
As a consequence, in today’s world of complex and large-scale development, understanding accounting, as well as engineering, is vital for achieving goals and effectively running a company.
You can also read:
- What is the Definition of Accounting?
- Functions of Accounting.
- Importance of Accounting.
- Accounting vs Book-keeping
