InvestorQ : Explain the characteristics and function of Accounting
Rakesh bro made post

Explain the characteristics and function of Accounting

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Anisha Awate answered.
1 year ago

A bank is a financial establishment which deals with deposits and advances. It can be a firm, company or a person that manages custody of money and pays out on the customer order.

Characteristics of the bank:
Dealing with Money
Accept Deposit, Giving loan
Agency services
A connecting link between borrower and lender.

Accounting system in a bank is quite simple. You may have heard someone saying, '' I will credit your checking account''. That means the transaction will add money to your respective bank account. On the other hand, the term 'Debit' means, deducting the money due to any financial reason.

Accounting in the bank also comes with terms like general ledger, bank statement, bank's balance sheet.
Each accounting terms are significant in their role. They have their respective subsidiary accounts.
The main benefit of accounting is the maintaining of various records of transactions and reconciliation. It also helps auditors to rectify or sometimes find fraud in the management.