Share
Explore BrainMass

the difference between accounting and finance

Please support responses with theory and research when applicable, with a minimum of 2 references used in the responses. Each response should be a minimum of one paragraph.

1. What is the difference between accounting and finance?

2. What is the difference between financial accounting and managerial accounting?

3. Explain the relationship between financial risk and financial return.

4. Why the U.S. health care system is considered complex?

5. Do health care organizations typically get paid based on their established charges? If not, explain how they get paid.

6. Why are charges not reported as revenue for health care organizations?

Solution Preview

Need help answering the following questions.

Please support responses with theory and research when applicable, with a minimum of 2 references used in the responses. Each response should be a minimum of one paragraph.

1. What is the difference between accounting and finance?
Accounting refers to the process of preparing the books of accounts of a firm, recording all its transactions, preserving the records, and periodically preparing the financial statement like the income statement, the balance sheet and cash flows. Whereas, finance refers to the activity of procuring, servicing and structuring of capital for a firm; It also refers to management of cash and liquidity of the firm. Accounting is related to capturing every transaction, recording it in the correct books and presenting the facts to management in the form of reports. On the other hand finance refers to management of investment, financial risk and capital for the proper running and growth of the firm. The finance function is managed by the finance manager, however, the accounting function is headed by the controller. The stress in accountancy is on accurate recording, preserving and reporting. The stress in finance is on decision making.

2. What is the difference between financial accounting and managerial accounting?
Financial accounting is based on historical facts and accurately conveys the outcome of transactions that have already taken place in a company. On the other hand management accounting has forecasts and pertains to the future of the company. The ...

Solution Summary

This answer provides you an excellent discussion on the difference between accounting and finance

$2.19