How a newbie differentiate between this? How one can know he/she is working is back-end system or front-end system?
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"Front-end" typically means the parts of the project a user interacts with--such as the graphical user interface or command line. It's a vague term, there isn't an exact definition.
"Back-end" means the parts that do the work, but the user is unaware of or cannot see. Databases, services, etc.
Think of it like a restaurant where you can't see the kitchen. As a customer you see the front-end--the decorations, menus, wait-staff. Meanwhile the kitchen and stockroom are out of view, but preparing food.

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It's true that Front-end includes User Interface but is not only user interface. It may also include services like in angular (a front-end framework) we make services. It may be any thing that is executed on clients machine and uses clients resources. Front end is build only using standard technologies that browser can understand (HTML, CSS, Javascript). – Al Fahad Oct 21 '18 at 09:55