A. Accounting and Economics:
It may be said without doubt that Accounting, as it stands during the present days, is closely related with modern micro and macro economic concepts. Economics points out to the prominent economic problems of personal and social life, and their possible or probable solutions. Economics deals with the problems pertaining to want and shows the ways of possible or probable solutions of these problems from the point of view of an individual and also from the point of view of the Society as a whole. Further, the subject of economic also points out the paths of procurement of Finance and frames various financial rules for the solution of diverse financial problems. Economics thus, mainly deals with finance. Accounting also is better known as Financial Accounting. Transactions here are always financial transactions. Accounting shows us the way of how the systematic and proper recording of such transactions can be made of how the systematic and proper recording of such transactions can be made into the Books of Accounts. This subject also lets us know the process of preparation of Financial Final Accounts and some Financial Statements like Balance Sheets etc. So we see that both are interrelated through the core-matter of finance. The nature of accounting transactions cannot be clearly understood and analyzed without the knowledge of economics. Again, Effective Cost Control, creation of Reserves, Provisions and Sinking Funds and preparation of Budgets and Budgetary Control also require a pretty good knowledge of contemporary economics. On the other hand, if an economics is well-conversant with the accounting customs and conventions, principles and postulates, usages and doctrines, then he can easily understand the nature and movements of the business world. Specially, for the accurate analysis of exchange rates, balance of payment position, public distribution system, tax structure, Revenue System etc., it is better for the economist to have at least some knowledge of accounting. For the above reasons present-day accounting is called “Economic Accounting.” So, if we are to learn the subject of accounting well, we are to know the Economics of Accounting.
B.Accounting and Engineering:
Modern Accounting is closely related to Engineering. In any Engineering firm, if one is to calculate correctly the Cost of Production, percentage of profit or Sale Price, one ought to know Accounting and Costing. Cost minimization, Cost control and cost calculation of engineering products cannot be made unless we know the principles of Costing and Accounting. Again, an accountant of an engineering concern should also have some knowledge of engineering and should know something about machines or machineries if he is to perform his work of accounting well. Moreover, in all the factories of business concerns there are always some machineries and if the accountant is to calculate annual depreciation etc. of those machines, he should have some knowledge about eh nature and activities of those machines. So, today, it cannot be denied that for efficient management of machines, for proper upkeep and maintenance of the machines, for future development and extensions of factories and for future replacement of appropriate machines, engineers are in need of accountants and the accountants are in need of the engineers. Therefore, it can be said that Accounting and Engineering are totally dependent on each other.
C. Accounting and Law:
In the modern world, all the societies are governed by various rules, regulations and laws imposed on all levels by the Sovereign Governments. Thus, the business units everywhere, whether big or small, are strictly tied up by different rules and regulations. Statutory concerns or Limited Companies are the glaring examples which are absolutely controlled by Acts. So, in almost all the countries, there are various industrial Acts, Industrial Disputes Acts, Companies Acts, Partnership Acts, etc. If the accountant does not know anything about these acts, it will not be possible for him to prepare the accounts properly and also to draw out the final accounts for submission to proper legal authorities. Further, the preparation of sales-Tax Returns and Income-Tax Returns will also become difficult for him if he is ignorant about these laws. He should also know the Financial Rules and Orders issued time to time by the Government so that he can assist the management in a better way. The accountant should also possess sufficient knowledge about social and criminal laws in order to perform the audit work efficiently. He should study the Case-Laws as well. So, it can be said that without the proper study of Law, knowledge about accounting cannot be complete. On the other hand, a successful Lawyer also should have at least some knowledge of accounting as in modern days, a considerable portions of the disputes is concerned with discrepancies of accounts and defalcations of money. So, now-a-days, it becomes impossible to separate law from accounting. Accounting and law are therefore considered as two branches of the same tree.
D. Accounting and Statistics:
As a matter of fact, it is very difficult to look upon Accounting and Statistics as two different subjects. Both are so similar as they appear to be the same. The task of a statistician is to collect data from different sources, to analyses the collected information and data in a very systematic manner and to draw a conclusion from the analysis. The accountant also collects various information and data from different accounts and statements. He also makes a systematic analysis of those data and presents the results of his analysis to the management of the business. Thus, he prepares Line Charts, Bar Charts, Pie chart etc. which the statistician also does. the accountant helps the management take important decisions with these statistical Charts. So, we see that a statistician sometimes collects accounting data and an accountant sometimes uses statistical methods. The two subjects are, therefore, compensatory to each other. They are therefore, very similar to each other. The only difference is that the accountant uses the knowledge of statistics in analyzing only the financial transactions but the domain of work of a statistical is not confine to accounting data only, his world of work is very wide, leaving almost nothing on the earth and space. The work of a statistician is all pervasive. So, we may conclude that Accounting and Statistics are very closely related.
E. Accounting and Mathematics:
If we think very deeply over the matter, it appears that accounting is only a branch of Mathematics. That is why Luca Pacioli appended his double entry system of book keeping with treatise on mathematics. It is only because of a close similarity between accountancy and mathematics in his mind. Actually in accountancy also he used all the numerical, the ratios, the percentages, etc. as used by the mathematicians. So in almost all cases of accounting mathematical approach is essential. An accountant will prove useless if he does not know mathematics. One cannot perform the work the work of accounting like recording the transactions, posting into the ledger, casting of the ledger accounts, balancing of the ledger accounts etc. If he has no knowledge of Mathematics. On the other hand, mathematicians also have enriched their subject by drawing many examples and illustrations from accounting. That is why, now-a-days, we see a new addition to the subject of Mathematics in the form of commercial Mathematics. So today, there is practically no difference between Accountancy and Mathematics. They are, therefore, more or less similar.
F. Accounting and Physics:
Physics is treated as a pure science or general science or natural science. The main object of this subject is to analyze and explain the comparison of matters within and outside the world, their behavioral pattern, their increment and decrement and also their properties. On the other hand, accounting is a social science or behavioral science. The subject is concerned with financial activities and transactions of social human beings. Therefore, accounting cannot be treated as a science as physics is. The Accountant measures expenses, incomes, values, etc.and the physicist evaluates the properties of matter. The accountant measures the financial transactions and records them into the books of accounts and physicist measure and records the changes in the properties of the whole world. So there is a great difference between these two subjects. There is practically very similarity or no similarity at all between the two. Accounting is financial science and physics is a physical science.
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