The term 'Accountancy' refers to a systematized knowledge of accounting and is regarded as an academic subject like economics, statistics, chemistry, etc. It explains 'why to do' and 'how to do' of various aspects of accounting. In other words, while Accounting refers to the actual process of preparing and presenting the accounts. Accountancy tells us why and how to prepare the books of account and how to summarize the accounting information and communicate it to the interested parties. Thus Accountancy is a science, a body of systematized knowledge, whereas Accounting is the art of putting such knowledge into practice.