Surbhi S, Author at Key Differences

Difference Between Revenue, Profit and Income

Revenue, profit and income, are three terms which sound same to a layman, although in business terminology there is a huge difference between them. Revenue implies the money received by the company from its day to day operations, alongwith the non-operating activities. On the other hand, profit implies the financial gain, which is arrived after deducting amount spent from the amount earned, by the concern, during the course of business in an accounting period. Income can be understood as the … [Read more...]

Difference Between Cash Book and Cash Account

In business, the transaction may occur in two ways, i.e. cash or credit. For recording cash transaction, there are separate books or accounts are maintained by the business entities, which are cash book and cash account. Cash Book is a subsidiary book, which records all the cash related transactions, i.e. receipts or payments. In the same way, Cash Account is an account in which cash receipts and disbursements are entered. These two differ in the fact that cash book is a subsidiary book, while … [Read more...]

Difference Between Cash Credit and Overdraft

Cash Credit (CC) is a loan account opened by the customer with the bank. The cash credit limit depends upon the assets' collateral. The limit is flexible, i.e. the banks have the authority to increase or decrease this limit. For this facility, banks charge interest on the actual amount used. Overdraft (OD) facility is for current account holders wherein the customer can draw excess amount than what is standing to their credit. This means that the bank permits the customer to debit his current … [Read more...]

Difference Between Current Account and Savings Account

We are all acquainted with banking terms, as we encounter them almost daily, especially after digitalization. Savings Account is one such account, that we all have. We use this account to save our money for the long term and earn a fixed rate of interest. On the other hand, there is a current account that corporates open with the purpose of performing frequent transactions. Now, you must be wondering - Why do we need to open a current account to perform transactions, when we can perform them … [Read more...]

Difference Between Tax Invoice and Retail Invoice

Invoices are an important instrument used in day to day operations of the business which acts as an evidence of the transaction. In general, there are two types of invoices - tax and retail. Tax invoice may be understood as the invoice issued by one registered vendor to another, during sales. Conversely, a retail invoice also known as sale invoice is issued, the sale is made to the final consumer. The main purpose of issuing tax invoice is to avail input tax credit. On the other hand, the … [Read more...]

Difference Between Capital Receipt and Revenue Receipt

In general, two types of receipts occur during the course of business. Capital Receipt is described as the money brought to the business from non-operating sources like proceeds from the sale of long-term assets and capital brought by the proprietor. These receipts do not affect the company's profit or loss. In contrast, revenue receipts are the result of the firm’s routine activities during the financial year, which include sales, commission, and interest on investment. These receipts affect … [Read more...]

Difference Between Capital and Revenue Expenditure

The occurrence of expenditure during the course of business is very natural. These are broadly classified into two categories, i.e. capital expenditure and revenue expenditure. Capital Expenditure is the one which a company incurs to acquire an asset or improve the capacity of the asset or repay long-term liability. Conversely, revenue expenditure implies the routine expenditure, that the company incurs to undertake day-to-day operations. Introduction Basically, we use the word 'capital' for … [Read more...]

Difference Between Purchase Order and Invoice

Purchase order or PO is the first formal offer document created by the buyer and delivered to the seller, with an aim of making purchase. When the document is accepted by the seller, it becomes a legally binding contract between the two parties. It indicates the type, quality, quantity, rate of the goods desired by the buyer. Once, the goods are delivered invoice is issued to the buyer for payment. Invoice is a commercial document, which is used by the seller to notify the buyer that payment is … [Read more...]

Difference Between Invoice and Cash Memo

A business transaction is one that is capable of being measured in monetary terms and that affects the company's operations. There are hundreds of business transactions that takes place daily. To record these transactions, there are different kinds of commercial documents are used. One such document is an invoice, which may be understood as a legal and commercial instrument, made by the vendor and sent to the customer or client, to authorize the sale. It sets forth, all the goods sent or … [Read more...]

Difference Between Whole Life and Term Life Insurance

Whole life insurance is a type of permanent life insurance that lasts for as long as the insured party pays the premium. Term life insurance lasts for a definite period, i.e. term. Whole life insurance differs from term life insurance in the sense that it never expires, i.e. it continues as long as the customer continues making payment of premiums. Also, it allows cash value along with death benefit, which becomes a major source of funds for future needs. Cash Value component is not present … [Read more...]