Found 1120 Articles for Banking & Finance

The major differences between cost inflation and deflation are as follows −InflationIt increases aggregate price level.If inflation is caused by demand it is called Demand pull inflation.If inflation is caused by supply it is called cost push inflation.It is beneficial to economy.It reduces purchasing power of money.It results in unequal distribution of money.DeflationIt decreases in aggregate price level.If deflation is caused by reduction in money supply, then it is called money supply deflation.If deflation is caused by credit factors, then it is called as credit deflation.It is not good for economy.It increases purchasing power of money.It reduces investments, increase in ... 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 in decision making.Requires statutory audit.It does not depend on management accounting.It is used by management, shareholders and vendors.It helps in taking effective decisions in business.Short/long term planning.It has much broader scope.It measures both quantitative and qualitative.It itself is a vast area.There is no specific procedure.Historic and predictive information is the ... 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 direct taxes.Specific tariff and Ad valorem tariff are its two types.Covers on imported/exported goods of a manufacture country to international country.Amount goes to government.

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 of goods.It is charged on goods and financial transactions.Custom duty and excise duty are types of duty.Narrow scope.Central government will impose duty.

The major differences between accounting depreciation and tax depreciation are as follows −Accounting depreciationIt is prepared for accounting purpose.It is based on International Accounting Standards Board (IASB) and accounting principles.One can choose any depreciation method.It is more accurate as compared to tax depreciation.Tax depreciationIt is prepared for income tax purpose.It is based on Internal Revenue service (IRS) regulations.It uses accelerated depreciation method.It is less accurate as compared to accounting depreciation.

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