The major differences between calendar year and fiscal year are as follows −Calendar yearIt has fixed time period.It is used in normal life undertaking.It includes 365 days (from January 1st to December 31st).Tax reporting is easy.MNC’s Financials is simple.Easy to compare financials of different companies.Fiscal yearBusiness can choose its starting ... Read More

The major differences between limited liability companies and partnership are as follows −Limited liability companiesPartnershipsOffers features of both partnership and a body corporate.It is governed by Limited Liability Partnership Act, 2008.Registration is mandatory with the ministry of corporate affairs.Charter document is LLP agreement.Liability is limited to capital contribution (except for ... Read More

The major differences between stock option and Restricted share unit (RSU) are as follows −Stock OptionIt is right to employee to buy fixed share at a fixed price and time.The employees receive stock after vesting period.Stock is used as a mode of payment.Taxes on non- qualified stock and incentive stock.Market ... Read More

The major differences between EBITA and operating income are as follows −EBITAEBITDA is defined as sum of EBIT, depreciation and amortisation (or) sum of net profit, taxes, interest, depreciation and amortisation.It tells about company’s profit earning capacity.The earning capacity of an organisation is calculated.It is not recognised by GAAP.The adjustments ... Read More

The major differences between EBITDA and net income are as follows −EBITAIt calculates profit making ability of a firm.The earning potential of a company can be calculated.EBITDA is defined as sum of EBIT, depreciation and amortisation (or) sum of net profit, taxes, interest, depreciation and amortisation.Tells about money income generated ... Read More

The major differences between EBIT and EBITDA are as follows −EBITEBIT refers to Earnings Before Interest and Tax.It measures company’s profit.Operation results are represented on accrual basis.EBIT is defined as difference between revenue and operating expenses.Depreciation/amortisation is taken into account.When capital intensive is less, financial markets gives priority to this ... Read More

The major differences between EBIT and operating income are as follows −EBITIt calculates company’s profitability.It is used to understand the company’s profit making capacity.It is not recognised by GAAP.The adjustments are made.The non-operated expenses are also considered.It is not reported in financial statements.Operating incomeIt calculates profit gained through operations.It is ... Read More

The major differences between cost accounting and management accounting are as follows −Cost accountingManagement accountingIt helps in taking decisions in cost computation, cost control, cost reduction.Short term planning.It has a very narrow scopeIt measures quantitative.It is a sub set of management accounting.There is a specific procedure.Historic informed is the basic ... Read More

The major differences between duty and tariff are as follows −DutyTariffIt is a tax imposed on export/imports goods.Similar to indirect taxes.Exciting duty and customs duty are its two types.Imposes on goods manufactured domestically and imports/exports of goods.Amount goes to government.These are taxes imposed on goods imported from other countries.Similar to ... Read More

The major differences between tax and duty are as follows −TaxDutyIt is the compulsory amount paid to the government.It is charged on income, wealth, service, sales etc.Direct tax and indirect tax are types of taxes.Wide scope.Central/state governments will impose tax.It is an amount charged by government on imports/exports and manufacture ... Read More