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Explain five differences between accounting and finance

Introduction to financial accounting, Bachelor of commerce, diploma in business management

Answers

KevinNyabute
1.Accounting is a methodical record keeping of transactions of business while Finance is the study of the management of funds in the best possible manner.
2.Accounting is a subset of Finance
3.The accounting information is helpful for the users of the financial statement for understanding the financial position of the business while Finance is useful in forecasting the performance of the entity in the future.
4.Accounting uses Income Statement, Balance Sheet, Cash Flow Statement, etc. as its tools. On the other hand, Leverage, Capital Budgeting, Ratio Analysis, Risk Analysis, Working Capital Management, etc. are financial tools.
5.There are four branches of accounting while there are only three branches of finance.
kevinnyabute answered the question on March 5, 2018 at 07:23

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