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What are differences between accounting and finance

1- What are differences between accounting and finance? What are the roles of financial managers? What are their fiduciary responsibilities of financial managers? What ethical standards should they abide by?

2- What are advantages and disadvantages of various business forms? What effect does the form of a business have on its profitability and the availability of funds? What is the relationship between a business form and its ability to raise capital?

3- What is the relationship between risk and return in an organization? Provide examples. How does your organization diversify and mitigate business risk? How do ethical issues influence financial decisions? What effect could this have on financial presentation?

4- How is the statement of cash flows interrelated with the income statement and balance sheet? If you were a credit analyst, which financial ratios would be important to decision-making? Why? What ratios would be important if you were a financial manager? Why?

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1- What are differences between accounting and finance? What are the roles of financial managers? What are their fiduciary responsibilities of financial managers? What ethical standards should they abide by?

Accounting deals with the entering, adjusting, and maintenance of accounts, including all of the data that makes up the accounting records, which leads to the result of a company's financial statement. Finance deals with the broader scope of the business's financial position, and makes up each of the elements that deal with managing the company's money. Finance encompasses the decision planning that takes accounting data into consideration when making asset purchases, or making liability or equity decisions for the company. Financial managers make recommendations to the individual or the business regarding the best strategies to follow, that will allow the company to both make money, and continue their growth. The fiduciary responsibilities of financial managers and their ethical responsibilities go hand-in-hand. The managers have a duty to act legally, ethically, and responsibly on behalf of the client and in the handing of each financial transaction and/or investment that is initiated for the client. If the financial manager acts unethically, the act is considered a breach of their fiduciary duty, even if the act is legal. Financial managers should always abide by a strict set of ethical principles that is very specific in dealing with customer transactions, due to the large amount of money and sensitive client data that ...

Solution Summary

What are differences between accounting and finance? What are the roles of financial managers? What are their fiduciary responsibilities of financial managers? What ethical standards should they abide by?

2- What are advantages and disadvantages of various business forms? What effect does the form of a business have on its profitability and the availability of funds? What is the relationship between a business form and its ability to raise capital?

3- What is the relationship between risk and return in an organization? Provide examples. How does your organization diversify and mitigate business risk? How do ethical issues influence financial decisions? What effect could this have on financial presentation?

4- How is the statement of cash flows interrelated with the income statement and balance sheet? If you were a credit analyst, which financial ratios would be important to decision-making? Why? What ratios would be important if you were a financial manager? Why?

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