Interested to Buy Any Domain ? << Click Here >> for more details...
what is the diffrence between accounting and finance?
- 4 Answers
- 10380 Views
- Genpact, I also Faced
- E-Mail Answers
Answer Posted / guest
Here is a detailed definition that helps you to know
everything about accounting and finance.
Accounting is the methodical or precise recording,
reporting, and assessment of financial deals and
transactions of a business. Accounting also involves the
preparation of statements or declarations concerning assets,
liabilities, and outcomes of operations of a business.
Personal finance is a management of assets and liabilities
in an efficient way. In a way, they are related to each
other and yet they also have differences between each other.
What is the connection between accounting and finance?
Accounting is an essential part of finance. It is a
sub-function of finance. Accounting produces information
about the operations of a business. The end-product of
accounting is composed of financial declarations such as
balance sheets, income declarations which include the profit
and loss accounts, and the declaration of changes in
financial position which includes sources and uses of funds
declaration. The data kept in these declarations and reports
aids financial directors in analyzing the previous
performance and future inclinations of the company and in
satisfying certain legal duties and responsibilities, such
as payment of taxes and many more. Therefore, accounting and
finance are practically closely connected.
One difference is associated with the treatment of funds and
the other is associated with decision making. In accounting,
the system of determination of funds; that is, income and
expenditures, is based on the accrual system. Revenue is
acknowledged at the point of sale and not when it was
collected. Expenses are acknowledged when they are incurred
than when they are paid. However, in finance, the system of
determination of funds is based on cash flows. The revenues
are acknowledged during the actual receipt in cash as in
cash flow and the expenses are acknowledged when the actual
payment is made as in cash outflow.
Another difference between accounting and finance is with
respect to their purposes. With accounting, it aims to
collect and present financial information. It furnishes
constantly improved and easily interpreted previous data,
present and future inclinations of the company. Meanwhile,
financial director’s prime duty and responsibility
associates to financial strategy, managing and controlling,
and decision making. Therefore, in a sense, finance starts
where accounting ends.
| Is This Answer Correct ? | 14 Yes | 3 No |
Post New Answer View All Answers
Do you know what is the importance of team work in this position?
hai! i am a BE(computer science) graduate with 54% of aggregate looking for bank clerk job? in interview they are asking why are you looking for a bank job and what guareente that once you are selected ? plz guide me?
What is mutual fund what is derivatives what is capital market what is TDS.breifly
I am a Leaving Cert Student. From Solutions to exam questions etc. I know what to do with the following adjustment but I cannot explain why. A thypical Adjustment is: A building is acquired for €60000 plus VAT at 10%. The amount paid to the Vendor was entered in the Buildings Account. No entry made in the VAT account. Could you explain why the VAT amount is deducted from the VAT amount in the TB? And why it is sometimes an Asset in the BS. Thank you, Mary
FROM WHERE I WILL GET PREVIOUS QUESTION PAPER OF JUNIOR ACCOUNTS OFFICER TEST OF B S N L
we had company we provide work others they deducted tds how to pass entries in my company please tell me
How do we calculate the cost of investment?
professional tax payment for april 2017 paid from ranbeers credit card what are the expesses booking entry in tally
what are doucement required under registration of properity firm. give the answer breif
What is use of statistics in accounting?
What elements of your job do you find most difficult?
All Interview related Questions pertaining to General Ledger,Finance & Accounts.
can any one tell what is the selection proces in cognizant for MBA finance
What is WCT ? Who will Resposible for deposit WCT Means TDS Deductor or Material supplier. Is TDs applicable on WCT. Who will responsible for deposit WCT. I Am New For this Field. Thanks in advance...
SOLD GOODS WORTH 5000 TO AKBAR WHO PAID 3000 ON ACCOUNT
