Book-keeping is the basis for accounting. It is because it is responsible for the proper recording of financial transactions.

The first book on double entry system was written by an Italian mathematician Fra Luca Pacioli and his close friend Leonardo da Vinci. The book was entitled as “Summa de arithmetica, geometria, proportioni et proportionalita” and was first published in Venice in 1494.

Book Keeping and Accountancy are often used interchangeably, but it is not true. These two terms are not identical. Book Keeping is an art but the accountancy is a science. Book keeping is usually done by the junior employees of the organization where he records the transactions in books of accounts i.e. journal and ledger. But information recorded in books does not give any idea about the financial position of the company. 

A Ratio is a statistical Yardstick to measure relationship between two accounting figures.It is very useful for the investors, suppliers, creditors. It is used as a mirror to reflect financial status of a particular company or group of company, firms, business houses.

a) A gearing ratio higher than 50% is typically considered highly levered or geared. As a result, the company would be at greater financial risk, because during times of lower profits and higher interest rates, the company would be more susceptible to loan default and bankruptcy.

Book-keeping is an art and science of recording business transactions in the appropriate books of accounts in accordance with the principles of accountancy for the purpose of ascertaining the profits or losses and the financial position of the business. Every businessman wants to know the profits of his business for a certain period. In order to ascertain the profits and loss of the business, he has to remember all the transactions of his business for a defined period of time. The system which is derived to record all the business transactions is known as book-keeping. According to R.N.Carter, "Book-keeping is the science and art of correctly recording in the books of accounts of all those business transactions that result in the transfer of money or money's worth".

Book keeping is the process of the daily record keeping of all of a company's financial transactions. Book keepers record the sales, expenses and cash and bank transactions of the business in a general ledger. The first thing you need to do when you start a business is realizing that this ledger and its accuracy are central. 

Luca Pacioli, in venice (1494) is considered as the first book on double entry book-keeping. A portion of this book contains knowledge of business and book-keeping.

A business itself can not depict anything until is has an accounting base. Any analysis is possible for the business only when it has proper accounting of the business. Hence accounting is always considered a back bone of any business. All interpretations are based on the accounting. 

Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. 

Accounting is an art of recording, classifying and summarizing the monetary business transactions. Accounting provides detailed information to the respective stake holders. Interested stake holders are creditors, lenders, customers, present and potential investors. Accounting is a language of business. Financial Statements provides the necessary business information to the management and other stake holders. 

Accounting is defined by the American Institute of Certified Public Accountants(AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."