07-09-2009, 05:47 PM
<b>What Is Accounting?</b>
The accounting field has existed longer than the finance field. Accounting relates to preparation of accounting records, preparation, analysing and interpretation of financial statements.
Generally Accepted Accounting Principles (GAAP) guide the accounting field and its profession. Characteristics of GAAP are
1. Relevance
2. Timeliness
3. Reliability
4. Comparability
5. Consistency
It should be known that each country has its own accounting body, which regulates preparation and publishing of financial statements. In addition to the country rules and regulations there are also international standards, e.g. the International Accounting Standards (IAS), which also need to be followed.
<b>What Is Finance? </b>
The study of finance consists of three interrelated areas (i) money and capital markets which deals with many of the topics covered in macro economics (ii) investments, which focuses on the decisions of individual and financial and other institutions as they choose securities for their investments portfolios, and (iii) managerial finance (business finance) which involves the actual management of the firm. In general the three areas are interrelated.
The accounting field has existed longer than the finance field. Accounting relates to preparation of accounting records, preparation, analysing and interpretation of financial statements.
Generally Accepted Accounting Principles (GAAP) guide the accounting field and its profession. Characteristics of GAAP are
1. Relevance
2. Timeliness
3. Reliability
4. Comparability
5. Consistency
It should be known that each country has its own accounting body, which regulates preparation and publishing of financial statements. In addition to the country rules and regulations there are also international standards, e.g. the International Accounting Standards (IAS), which also need to be followed.
<b>What Is Finance? </b>
The study of finance consists of three interrelated areas (i) money and capital markets which deals with many of the topics covered in macro economics (ii) investments, which focuses on the decisions of individual and financial and other institutions as they choose securities for their investments portfolios, and (iii) managerial finance (business finance) which involves the actual management of the firm. In general the three areas are interrelated.
