Assessment refers to the evaluation of something. When it comes to learning, students are assessed by the educational institution, to analyse their learning graph, their understanding level and progress. It also helps in planning further study material. Assessment can be of two types, i.e. it can be formative or summative. The formative assessment (FA) is conducted during the learning process. On the contrary, summative assessment (SA) is undertaken only at the end of the course or unit. The … [Read more...]
Difference Between CPI and RPI
CPI and RPI are two popular methods of measuring inflation. As both indexes use a basket of goods for calculating inflation, it is hard to differentiate them. While, Consumer Price Index (CPI) which is projected, by taking the average price of the economic output purchased by the consumers as a base, while Retail Price Index or RPI measures the variations in prices of retail economic output. The first and foremost difference between CPI and RPI is that While the consumer picee index excludes … [Read more...]
Difference Between Basic and Diluted EPS
Basic Earning Per Share is the ratio, that is reckoned to know the earnings available to each equity share. It is calculated by considering company's ordinary shares. On the other extreme, diluted earnings per share are computed when there are potential shares, i.e. convertible securities, in the company's financial structure. Earning per share (EPS) as its name suggests, it is that portion of the profit which is attributable to the shares outstanding. Financial Accounting Standard Board … [Read more...]
Difference Between Foreclosure and Short Sale
Foreclosure is a process in which the lender takes possession of the mortgaged asset when the borrower consistently fails to pay the outstanding payments. On the other hand, Short Sale is a process in which the lending institution allows the owner of the property to sell it, on his own. The main difference between foreclosure and short sale, lies in the fact, that the two are used at different times, as well as they are initiated by different persons. These are the two alternatives … [Read more...]
Difference Between Organised and Unorganised Sector
Sectors are majorly divided into three categories primary, secondary and tertiary. Based on the employment conditions these are further classified as an organised and unorganised sector. The organised sector is one that is incorporated with the appropriate authority or government and follow its rules and regulations. On the contrary, the unorganised sector can be understood as the sector, which is not incorporated with the government and thus, no rules are required to be followed. While the … [Read more...]
Difference Between Credit Union and Bank
Credit union refers to financial cooperative, which is a non-profit entity. It allows its members to borrow money from pooled funds, at cheap interest rates. Many times they are juxtaposed with a bank, but they are not one and the same thing. A bank can be described as a financial institution that provides banking services to the customers, such as accepting deposits, extending credit, safeguarding valuables and providing allied services. The credit union is a member-owned organisation, which … [Read more...]
Difference Between Deflation and Disinflation
Many think that deflation and disinflation are synonymous and use them interchangeably as they lead to fall in the general price level, due to which money supply in the economy declines. Nevertheless, these two terms are different in a sense that deflation, is a situation where the price of the goods and services goes down while disinflation is when there is a gradual decrease in the rate of inflation. Sustained disinflation may lead to disinflation. Deflation takes places when the inflation … [Read more...]
Difference Between Risk and Uncertainty
In our day to day life, there are many circumstances, where we have to take risks, which involves exposure to lose or danger. Risk can be understood as the potential of loss. It is not exactly same as uncertainty, which implies the absence of certainty of the outcome in a particular situation. There are instances, wherein uncertainty is inherent, with respect to the forthcoming events, i.e. there is no idea, of what can happen next. So, in short, risk describes a situation, in which there is … [Read more...]
Difference Between Will and Trust
A will can be described as a legal document, that states the manner in which a person's assets, belongings, and personal stuff are distributed among the legal heirs, after his/her demise. On the other hand, a trust is a form of obligation attached to the ownership of the property, that is a result of confidence, accepted by the owner and author, for the benefit of another person or the owner. As both are used to manage and distributes the assets of a person, many people get puzzled between … [Read more...]
Difference Between Fixed Capital and Working Capital
The primary function of the financial manager is to ensure availability of finance, to fulfill different purposes such as initial promotion, fixed capital, and working capital. Fixed Capital refers to the capital, which is invested in procuring fixed assets for business. On the other hand, working capital represents the amount of money utilized for financing day to day business operations. It is required to support the proper functioning of the company's business operations. Fixed Capital and … [Read more...]
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