Affiliates What is the difference between interstate and intrastate business? Interstate business is business conducted between states. For example, if your company in state A provides a product or service for someone in another state state Byou are conducting interstate business.
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. Therefore, in a sense, finance starts where accounting ends.A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.
Your credit scores are calculated based on the information in your credit report. However, Andrew still wasn’t satisfied with Mahesh’s answer. So, Mahesh explained further: The difference between these two accounts: An NRE account is a bank account opened in India in the name of an NRI, to park his foreign earnings; whereas, an NRO account is a bank account opened in India in the name of an NRI, to manage the income earned by him in India.
Jun 25, · The Securities and Exchange Commission (SEC) has on their website a page entitled, "Investment Advisers: What You Need to Know Before Choosing .
Finance managers and controllers are responsible for the financial condition of their organizations. The two functions are similar, but finance managers tend to be involved in the management of a company's finances while controllers focus on the accounting function and reporting.
Luxury branding requires clear distinction between "luxury" and "premium". Luxury brands have to be managed differently then ordinary and premium ones.
Key Difference – Financial Reporting vs Financial Statements A business conducts a number of transactions and has many interested parties. The activities of the business become more complicated as it grows, thus a proper mechanism is required to govern such activities.