http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/ Just another WordPress weblog Sun, 28 Feb 2010 07:02:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/comment-page-1/#comment-2589 ? Wed, 14 Oct 2009 22:40:14 +0000 http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/#comment-2589 You finance to finance and account to accounting. LOL You finance to finance and account to accounting. LOL

]]> http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/comment-page-1/#comment-2591 Ellen P Wed, 14 Oct 2009 22:28:29 +0000 http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/#comment-2591 it is practically correct in common sense. Acctg accounts the assets and liabilities for the balance sheet purposes & the sales and expenses for the profit/loss for a certain period. In some (big) companies acctg is a part of Finance. it is practically correct in common sense. Acctg accounts the assets and liabilities for the balance sheet purposes & the sales and expenses for the profit/loss for a certain period. In some (big) companies acctg is a part of Finance.

]]> http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/comment-page-1/#comment-2590 "FLAWLES Wed, 14 Oct 2009 22:26:41 +0000 http://www.xtacash.com/what-is-the-different-between-finance-and-accounting/#comment-2590 Fundamentally accounting deals with hard numbers, or in some cases, proxies for hard numbers (like good will, to which a currency-based value can be assigned). Finance was developed out of accounting practice by international companies like IBM and GE that needed to incorporate strategy into their evaluation of hard numbers, which is called performance. An analogy is the field of marketing which was developed out of sales for similar reasons. In both cases, the impact of market forces is incorporated into performance projections to forecast what the numbers mean. Finance studies trends, benchmarks, projections, impact, and return on investment, among other things. Accounting provides the data for these considerations. That data includes profit and loss. As for liability, it is calculated both in real terms, i.e. what you owe or the value of what you own; and in soft terms, what your exposure to risk is. Wall Street will evaluate a tobacco or pharmaceutical company in terms of the potential loss from a law suit and count this as a liability. Finance does include money management and investment. Fundamentally accounting deals with hard numbers, or in some cases, proxies for hard numbers (like good will, to which a currency-based value can be assigned). Finance was developed out of accounting practice by international companies like IBM and GE that needed to incorporate strategy into their evaluation of hard numbers, which is called performance. An analogy is the field of marketing which was developed out of sales for similar reasons. In both cases, the impact of market forces is incorporated into performance projections to forecast what the numbers mean. Finance studies trends, benchmarks, projections, impact, and return on investment, among other things. Accounting provides the data for these considerations. That data includes profit and loss. As for liability, it is calculated both in real terms, i.e. what you owe or the value of what you own; and in soft terms, what your exposure to risk is. Wall Street will evaluate a tobacco or pharmaceutical company in terms of the potential loss from a law suit and count this as a liability. Finance does include money management and investment.

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