Key Differences

Many think that the term industry and sector resemble each other, as both are used to indicate enterprises that either operates in a particular segment or their business type are identical. However, the two terms actually indicate two different divisions of the economy. While the industry is an umbrella term, that covers all the firms which are engaged in similar business activities. On the other hand, sector refers to the broad classification of the economy, into various segments. In an … [Read more...]

While liquidity is how effectively the firm is able to cover its current liabilities, through current assets. Solvency determines how well the company maintains its operation in the long run. At the time of making an investment, in any company, one of the major concerns of all the investors is to know its liquidity and solvency. These are the two parameter which decides whether the investment will be beneficial or not. This is because these are related measures and helps the investors to … [Read more...]

While communication refers to the interchange of message or information from one person to another, either verbally or non-verbally. On the other hand, language is a human communication method or the system through which two people interact. It is used in a particular region or community, for imparting a message, to each other, with the use of words. In the process of communication, language plays an important part. Indeed, all the living beings in this world communicate in their own … [Read more...]

Intellectual property refers to the human creations, in which a person uses his/her brain, labour and capital. Copyrights and Patents are two rights that provide protection to Intellectual Property. These are the intangible assets which a company owns and has some economic value. While copyright protects creative and intellectual works, which covers artistic, literary, musical and dramatic work. It is used to differentiate various classes of work. On the other hand, a patent protects new … [Read more...]

The basic difference between fixed asset and current asset lies in the fact that how liquid the assets are, i.e. if they can be converted into cash within one year, then they are considered as a current asset while when the asset is kept by the firm for more than one accounting year, then it is known as fixed assets or non-current assets. In accounting, we often encounter the term assets, which indicates those items or resources owned by the firm, which is supposed to provide monetary benefit … [Read more...]

The tangible assets are the class of assets that are physically present, thus they can be seen or touched. On the other hand, the intangible assets represent the assets which are abstract, i.e. they can neither be seen nor touched, but can only be experienced. Assets are anything having some value, which is owned by an individual or firm and is expected to provide economic benefit in future. It is the basic business requirement that is needed by the company for its smooth functioning. It is … [Read more...]

While income is generated, wealth is created, there is a big difference between two. Many think that these two terms are one and the same thing, but in reality, income is a stream of money, which a person receives from different sources such as salary, rent, profit, interest etc., that helps in the creation of wealth and wealth is the total market value of all the assets possessed, stored or saved by a person for future use. The former is the money earned by a person, over a limited period … [Read more...]