← Search

STATISTICAL USES OF ACCOUNTING DATA.

William B. Rice

The Accounting Review 1944

Abstract The article presents information on statistical uses of accounting data. The distinction between bookkeeping and accounting is a significant one. Bookkeeping can be defined as the procedure used in recording business transactions. Accounting is the organization and analysis of the records. From the statistical point of view this division of labor can be compared first with the posting and computations of statistical data, and second with the collection and interpretation thereof. Many other valid parallels can be drawn between accounting and statistics. Both deal with figures, both require analytical skill, both apply to their data highly specialized techniques. Accounting demands that debit and credit entries balance to the last cent. Statistics is content with nearest thousands or even million depending upon the size of the figures, because the statistician's work is largely estimating for the purpose of formulating policies and action. The accountant, trained to exactitude, may not understand the statistician's tendency toward approximations.

DOI
10.2308/tar-7036893
Volume
19 (3)
Pages
260-266
Language
en
Export
BibTeX
Sources
openalex crossref