Part I. Financial Statements and Ratio Analysis and Forecasting
4.2: Accounting versus Finance
39 of 150 · 63 words
From Introduction to Financial Analysis by LibreTexts (Kenneth S. Bigel, Touro University), used under the CC BY 4.0 licence. Written for a general audience, not for NEPSE.
Here, we summarize some of the key differences between Accounting and Finance.
| Accounting | Finance |
|---|---|
| Historical | Future-oriented |
| Summary of all data | Incremental [1] focus |
| Reporting | Decision-oriented |
| Rules-based | Logic |
| Legalistic | Managerial |
One is not “better” than the other. You just need to know what each is – in terms of its purpose, in order to deal with them.
In the hour when a person is brought before the heavenly court for judgment he is asked:
Did you conduct your business affairs honestly?
This chapter at LibreTexts (Kenneth S. Bigel, Touro University). Tables and text are reproduced; images, videos and quizzes are not.