Accounting information is reported in the form of a financial statement. The financial statement is the final outcome of the accounting process and is prepared as per the basic accounting principles, concepts and assumptions. It helps to draw conclusions on the company's profitability, efficiency, performance, and position. These are furnished in such a way that the users of financial statement can understand them easily and take decisions. It includes profit& loss account, balance sheet, … [Read more...]
Difference Between Nonprofit and Not for Profit Organization
Non-profit organizations are the association of persons organized with an aim other than making a profit, such as to promote religious, cultural or educational objectives. In these organizations, no profit is distributed or transferred to the members, directors or trustees. It is often juxtaposed with non for profit organization, which is set up for the welfare of the society and provide service to a particular group or public in general. Profit is not the primary motive of all the … [Read more...]
Difference Between Trial Balance and Balance Sheet
Trial Balance is a part of the accounting process, which is a schedule of debit and credit balances taken from all the ledger accounts. As every transaction affect two sides, i.e. every debit has a corresponding credit and the reverse is also true. The total of debit and credit balances are equal in the trial balance. In contrast, the Balance Sheet is the statement that exhibits the company's financial position, by summarizing the assets, liabilities, and capital on a particular date. In … [Read more...]
Difference Between NOPAT and Net Income
Profit making is the main motto of every company. It works as an incentive to the entrepreneur for the risk taken by him, for running a business. It is like the fuel, which helps the business to survive, grow and expand in the long run. In business parlance, Net operating profit after tax, i.e. NOPAT, is the actual after-tax operating profit of the company or in simple terms, it is the earning of the company after interest and tax. Net Income, on the other hand, refers to the actual profit … [Read more...]
Difference Between Invoice and Receipt
Both invoice and receipt are non-negotiable commercial instruments, which are used during the course of a transaction. While an invoice is a document, made by the seller and issued to the buyer, so as to authorize the sale. It contains the details of the goods and contains the name and address of the parties to transaction, price, discount, date, and place of delivery. In contrast, receipt, is a simple official acknowledgment, that the goods or services have been received. It is prepared by … [Read more...]
Difference Between Balance Sheet and Cash Flow Statement
Cash flow Statement is as important as the other two parts (Profit & Loss Account and Balance Sheet) of the accounting information furnished in the form of financial statements at the end of the financial year. It is the statement which describes the flow of cash and cash equivalents in and out the organization. The statement is helpful to the stakeholders or say interested parties, in learning about the sources and uses of the company's cash during a particular financial year, from … [Read more...]
Difference Between Balance Sheet and Profit & Loss Account
Balance Sheet, or otherwise known as position statement, is a statement which shows the financial position of the company on a specific date. It lists all the ownership, i.e. assets and owings, i.e. liabilities of the company. Profit & Loss Account, on the other hand, also known as income statement is the account that shows the revenue earned and expenses sustained by the company, during the course of business, in a financial year. The two statements are an integral part of the financial … [Read more...]
Difference Between Cost Accounting and Management Accounting
Cost accounting is that branch of accounting which aims at generating information to control operations with a view to maximizing profits and efficiency of the company, that is why it is also termed control accounting. Conversely, management accounting is the type of accounting which assist management in planning and decision-making and thus known as decision accounting. The two accounting system plays a significant role, as the users are the internal management of the organization. While … [Read more...]
Difference Between Bankruptcy and Liquidation
Bankruptcy can be understood as a financial state, whereby a person is declared insolvent by the court, resulting in legal orders directed to resolve insolvency, i.e. to dispose of personal assets to discharge obligations. On the other hand, liquidation may be defined as the process of winding up of company's affairs by disposing-off assets, in order to discharge liabilities of the debenture holders creditors, employees and other parties. While bankruptcy nothing but a legal scheme, wherein … [Read more...]
Difference Between Gross and Net Income
Gross, as the name suggests is the entire amount received by the entity from any activity, without giving effect to deductions like expenses. Gross income means the amount by which revenue of the company supersedes cost of production. On the other hand, net is termed as the actual value left after giving effect to the deductions such as expenses. So, net income implies the actual income earned by the company after subtracting all expenses and losses. The terms gross income and net income is … [Read more...]
- « Previous Page
- 1
- …
- 70
- 71
- 72
- 73
- 74
- …
- 78
- Next Page »