The major differences between horizontal analysis and vertical analysis of financial statements are as follows −Horizontal analysisIts main aim is to compare line items to calculate the changeover the time.In this, information is compared line by line to make decisions.It is useful when financial results of current/targeted years are compared ... Read More

The major differences between comparative analysis and common size analysis are as follows −Comparative analysisIt shows previous financial results side by side along with its change in amount/percentage.It compares current year results with its base year.It’s a horizontal analysis.The results are expressed in both percentages and pictorial form.Both inter and ... Read More

The major differences between trend analysis and comparative analysis are as follows −Trend analysisIt is designed to look for trends in business performances.It is analysed in horizontal methods.It adopts line by line method.It can be interpreted in absolute terms, as a percentages and in graphical forms.It is useful to compare ... Read More

The major differences between tangible assets and intangible assets are as follows −Tangible assetsThey have physical existence.They get depreciated.Liquidation is easier as compared to intangible assets.They can be determined and evaluated easily.They increase the value of the company.They can be accepted as collateral.They can be effected by natural calamities and ... Read More

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 ... Read More

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 ... Read More

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 ... 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 ... 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 ... 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 ... Read More