Primary data is information collected from the original or first-hand source. In the field of accounting, primary data is collected from source documents such as receipts, bank statements, pay slips, and cheques, whereas in economics and other fields of studies, primary data is collected from surveys, experiments, and field studies.
An advantage of using primary data is that the information collected is for a specified purpose. This means that the questions and documents used are created in a manner that allows for the collection of data relevant to the specified purpose.
Primary data is subsequently used in secondary sources such as textbooks, research projects, statistical reports, and other published materials. Primary data is typically raw data. In contrast, secondary data is usually collected from several sources and recounts past events reported in primary sources. Furthermore, secondary data is usually analyzed, interpreted and presented in a simplified manner for greater understanding by the readers.
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