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Articles by Mandalika
Page 38 of 41
Differentiate between accounting standards and accounting concepts.
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 MoreCompare between accounting concepts and accounting convections.
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 MoreDifferentiate between finance and accounting.
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 MoreDifferentiate between company and firm.
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 MoreMention the difference between corporate strategy and business strategy.
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 MoreState the difference between NSE and BSE.
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 MoreState the difference between NBFC and Bank.
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 MoreDifference between book value and market value.
The major differences between book value and market value are as follows −Book valueReal value of an asset.Reflects firm’s equity.Not related to financial market.Depreciation is taken into account.Book value = (assets – liabilities)/ number of outstanding shares.Book value = cost of asset – (depreciation + amortization).Frequency of fluctuations happens at periodic intervals.Accounted in balance sheet based on historical cost, amortized value or fair value.Market valueMaximum value of an asset/security which can be bought/sold in the market.Reflects current market price.Market value is dependent on financial market.In most cases, depreciation is not accountable.Market value = market price per share * number of ...
Read MoreCompare equity and commodity.
The major differences between equity and commodity are as follows −EquityCommodityInvestment/capital invested in a firm/entity to acquire ownership.Known as shareholder.Have ownership of that particular firm.Less volatile.Long term investments.Less risk compared to commodity trading.They get dividends.Better liquidity.Very few regulations, free market.Don’t need margin.Risk is not diversified.Do not have lot size.Traded on stock exchanges.long duration.Infosys, reliance etc.Refers to undifferentiated product on which traders can invest.Known as an option holder.No privileges are available.Highly volatile.Highly risky.Not eligible for dividends.Low liquidity compared to equity.Supervised by SEBI, derivative market.High margins required.Risk is diversified.Traded in lot size.Short term trades.Traded on commodity exchanges.They have time frame because they ...
Read MoreDifferentiate between investing and trading.
The major differences between investing and trading are as follows −InvestingCreates wealth over a long period of time.Buying and holding.Market fluctuations has no effect.Add on benefits − bonus, dividends etc.Fundamental indicators are EPS, price to earnings, current ratio etc.Long term period.Creates wealth by compound interest and dividends.Low risk.Industry, economics, financials, competitors etc. will be affected.Very few brokerage charges.Makes sound investments.TradingGenerates profit frequently.Buying and selling of stocks.Daily market fluctuations will effect.No add on benefits.Technical indicators: moving averages, stochastic oscillators etc.Short term period.High risk.Psychology of market, money management, risk rewards etc. will be affected.Have brokerage charges.Requires active environment.
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