The major differences between financial accounting and management accounting are as follows −Financial accountingIt provides financial information to parties by preparing financial statements of a company.It is compulsory and covers only information related to monetary.Its main objective is to prepare financial information.These have specified formats to prepare.Prepared based on GAAP and is generally prepared once in a year.These are published and audited by statutory auditorsIt has historical perspective.Shareholders, lenders etc. use financial accounting.Management accountingIt provides information which helps in making policies, plans and strategies for effective business.It is not compulsory and covers both information related to both monetary and non- ... Read More

The major differences between accounting standards and accounting concepts are as follows −Accounting standardsThese are uniform rules which started in 1950s and are rigid in nature.Individuals, business firms should follow these standards.Its main objective is to correct measurements and disclosure.It creates more responsibilities.There are various accounting standards, some of them are AS 1 disclosure of accounting policies, AS 3 cash flow statements, AS 6 Depreciation accounting etc.Accounting conceptsThere are various accounting concepts and they are customary and flexible in nature.It offers liberty to follow various methods.It is less responsible as compared to accounting standards.It is independent of evolving needs of ... Read More

The major differences between accounting concepts and accounting convections are as follows −Accounting conceptsThese are rules that should be followed while recording transactions and preparing final accounts.It’s a theoretical notion.These rules are set by accounting bodies.Its main concern is the maintenance of accounts.Biasness is not possible here.It is legally recognised.There is no role of personal judgement.Accounting convectionsThese are customs/practices which are accepted by accounting bodies, adopted by firms and act as guide in preparation of final accounts.These are methods/procedure.These are set by common accounting practices.Its main concern is preparation of financial statement.Biasness is possible here.There is no legal recognition.Personal judgment ... Read More

The major differences between finance and accounting are as follows −FinanceIt is the science of planning the distribution of assets within the company.Its main objective is to study capital market and funds of business for making future strategies.The tools for accounting are risk analysis, capital budgeting, ratio analysis, etc.The branches of finance are private finance, public finance, corporate finance.Finance is not a part of accounting.Career for finance are investment banking, corporate finance, equity research, private equity, risk management, quantitative analysis, project finance, technical analysis.In finance, success mainly depends on technical skills.Work pressure is an intrinsic part of finance.AccountingIt is an ... Read More

The major differences between rate of interest and internal rate of return are as follows −Rate of interestIt is used to calculate performance of the investment over a period of time.The formula to calculate the rate of interest is Rate of interest = [(excepted value – original value)/original value}*100.It can estimate growth rate over the investment period.It does not consider future value of money.It is relatively easy to calculate.Internal rate of returnIt is used to calculate the rate of return on an investment for shorter period of time.The formula for calculating the internal rate of return is Internal rate of ... Read More

The major differences between company and firm are as follows −CompanyRegistration is mandatory to establish as a company.They have legal entity and can be sue/sued under its name.It requires minimum capital of 1 lakh for private company and 5 lakhs for public limited.It is certificate of incorporation and commencement.Maximum number of members for a private company are 200 and for a public company the maximum number of members are unlimited.There will be legal formalities when a company decides to wind up/dissolve.For a company management of concern are its Directors.There is a perpetual succession.FirmThere is no mandatory registration is required for ... Read More

The major differences between corporate strategy and business strategy are as follows −Corporate strategyIt helps the business to operate a whole organisation.Its main aim is to elevate profits and making company grow faster.It is formed by top level management.It deals with operations of total business organisation.It is long term strategy.It is formulated at organisation level.Examples − expansion, etc.Business strategyIt is concerned with ameliorating the overall performance of an organisation.Its main aim is to compete with other products in the market.It is developed by middle level management.It deals with particular unit/division of a business.It is short term strategy.It is formulated for ... Read More

The major differences between National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are as follows −NSENational Stock Exchange was founded in 1992.Its vision is “Continue to be a leader, establish a global presence, facilitate the financial well-being of people”.It is largest stock exchange in India.It is 11th largest stock exchange in the world.It facilities trading equity, equity derivatives, debt and currency derivatives segmentsbenchmark index is nifty.It is also called as The Largest Stock Exchange.The number of companies in this index are 50.More than 5000 companies are listed in NSE.It has high trading volume.BSEBombay Stock Exchange was founded in 1875.Its ... Read More

The major differences between NBFC and Bank are as follows −NBFCProvides banking services without holding banking license.Incorporated under companies Act 1956.Demand deposits are not accepted.100% foreign investments are accepted.Maintenance of reserve ratio are not compulsory.No deposit insurance facility is available.They don’t create credit creation.No transaction services are provided.BankIt is an authorised financial intermediary to provide banking services.Incorporated under banking regulation Act 1949.Demand deposits are accepted.Allows up to 74% for foreign investments in private sector.Maintenance of reserve ratio is compulsory.Deposit insurance facility is available.Banks create credit creation.Transaction services are provided.Read More

In a company, there are two types of reserves namely Capital Reserve and Revenue Reserve. The basic difference between the two is that, capital reserve is the fund created for non-trading activities, whereas the revenue capital is the fund created for trading activities. In this article, we will discuss all the important differences between capital reserve and revenue reserve. But before that, let's start with some basics of capital reserve and revenue reserve so it will become easier to understand how they are different from each other. What is Capital Reserve? The type of reserve that is created from the ... Read More