a) What are the main differences between Finance and Accounts?
b) Describe the 3 types of Accounting with special emphasis on
the roles performed in each.
Ans. a : Main differences between Finance and Accounts are as follows :
* Accounts is responsible for preparing financial statements whereas finance responsibilities is to analyse them.
* Accounts is backward looking whereas finance is forward looking.
* Accounts is rule based whereas accounts is analysis based.
Ans. b : The three types of accounting with special emphasis on role performed are as follows :
* Real accounting : All assets of business which are tangible or intangible falls under this category. Rule : debit what comes in business and credit what goes out from business.
* Personal accounting : This accounting is related to individual, firm, companies etc. Rule : debit the receiver and credit the giver.
* Nominal accounting : It's accounting related to income, gain, losses and expenses etc. Rule :expenses or losses of business are debited and income or gain of business are credited.
a) What are the main differences between Finance and Accounts? b) Describe the 3 types of...
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