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Difference Between Content, It seems like your question might be cut off, and I’m not sure what specific differences you are asking about. Could you please provide more context or clarify your question? So that I can better assist you? “Content” is a broad term that can refer to various things. Such as content in the context of media, digital marketing, or even academic content. So a bit more information would be helpful.

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  • Difference between Central and Commercial Banks

    Difference between Central and Commercial Banks

    The primary difference between Central and Commercial Banks; In any country’s financial sector, banks play a crucial role in the overall economic development, by mobilizing savings of individuals and entities. The Content of Difference between the Central Banks and Commercial Banks – Definition, Functions, Differences, Comparison, and Main Key Differences. They act as an intermediary between depositor and borrower. Besides lending money, banks provide various other value-added services, that help in the smooth functioning of the economy. Also, the Central bank, as the name suggests is the apex body, that regulates the entire banking system of the economy.

    Learn, Explain the Difference between Central and Commercial Banks! 

    The Central bank is not the same as a commercial bank, which is the financial institution that provides banking services to individuals and firms. There is a big difference between the central bank and commercial bank in India, in the sense that the former is the top financial institution in the country, whereas the latter is an agent of the Central Bank. Check out the article in which we have compiled some differences in tabular form.

    Definition of Central Banks:

    Central Bank is the supreme financial institution that regulates the banking and monetary system of the country. It is formed to bring monetary stability, issue notes, and maintain the value of a country’s currency in the international market. It administers the currency and credit system of the nation.

    In India, the Reserve Bank of India plays the role of a central bank, which came into existence, after passing an act in parliament in 1934. The bank is headquartered in Mumbai, Maharashtra.

    The following are the main functions of the Central Banks:
    • It has the power to control, direct, and supervise commercial banks. Also helps them at the time of need.
    • It employs various measures to control the credit operations of the commercial banks.
    • It’s the banker and advisor to the government of the country.
    • It acts as a manager of foreign exchange reserves.
    • It collects and publishes information relating to the banking and financial sector.
    • It’s authorized to issue currency notes except coins and notes of small magnitude.
    • It oversees the credit and monetary policy of the nation.

    Definition of Commercial Banks:

    The entities that provide banking and financial services to a large number of people are known as Commercial Banks. They act as a mediator between the borrowers and savers. Also, Commercial Banks receive deposits from the general public and lends it at high interest to individuals and organizations. In this way, the mobilization of savings takes place, and the economic cycle goes on smoothly.

    In earlier times, people used to deposit money in post offices for saving purposes, when the requirement of the banking system was felt. The people want an establishment where they can deposit their savings and withdraw them at the time of need. At present, there are more than 600 commercial banks in India, which include public sector banks, private sector banks, scheduled banks, non-scheduled banks, nationalized banks, etc.

    The essential functions of a Commercial Bank are:
    • It accepts deposits from the general public, firms, institutions, and organizations. Further, it gives the facility to withdraw money on demand. Banks pay interest on deposits at various rates on different deposits.
    • The lends money to the public, institutions, and organizations in the form of long term and short term loans for a particular period and charges interest on the amount lent. Moreover, it provides overdraft and cash credit facilities to the customer.
    • It performs agency functions like collections of bills of exchange and promissory notes, trading of shares and debentures, payment to third parties on standing instructions of the customer, etc.
    • It provides the facility of safekeeping of valuables like jewelry and documents.
    • Collects, transfers, and makes payment of funds on behalf of the customer.
    • It provides the facility of ATM card, Debit Card, Credit Card, Cheques, etc., to its account holders.

    Differences in Central Banks:

    • Work for the public welfare and economic development of a country. A central bank is governed by the government of a country.
    • Controls and regulates the entry banking system of a country.
    • Do not deal directly with the public. It issues guidelines to commercial banks for the economic development of the country.
    • Issues currency and control the supply of money in the Market.
    • Acts as a state-owned institution.
    • Act as a custodian of foreign exchange in the country.
    • Act as a banker to the Government.
    • Controls credit creations in the economy thus act as a clearinghouse of other banks.

    Differences in Commercial Banks:

    • Operates for Profit Motive. The Majority of Stake is held by the government as well as the private sector.
    • Operates under the direct control and supervision of the central bank. In India, all the commercial banks work under the guidelines issued by RBI.
    • Deals directly with the Public. It serves the financial requirement of the public by providing short and medium terms loans and depositing and securing money that can be drawn on demand.
    • Does not Issue currency, but only adds to the approval of the central bank.
    • Acts as a state or privately owned institution.
    • Perform foreign exchange business only on the approval of the central bank.
    • Acts as agents of the central bank.
    • Acts as a clearinghouse only as an agent of the central bank.

    Comparison of Central and Commercial Banks:

    The Basis for Comparison CENTRAL BANKS COMMERCIAL BANKS
    Meaning The bank which looks after the monetary system of the country is known as Central Bank. The establishment, which provides banking services to the public is known as Commercial Bank.
    What is it? It is a banker to the banks and the government of the country. It is the banker to the citizens of the nation.
    Governing Statute Reserve Bank of India Act, 1934. Banking Regulation Act, 1949.
    Ownership’s Public Public or Private
    Profit motive It does not exist for making a profit for its owners It exists for making a profit for its owners.
    Monetary Authority It is the supreme monetary authority with wide powers. No such authority.
    Objective Public welfare and economic development. Earning Profits
    Money supply Ultimate source of money supply in the economy. No such function is performed by it.
    Right to print and issue currency notes Yes No
    Deals with General Public Banks and Governments
    How many banks are there? Only one Many

    Main Key Differences between Central and Commercial Banks:

    Difference between Central and Commercial Banks
    Difference between Central and Commercial Banks

    The following are the differences between the central and commercial banks:

    • The bank, which monitors, regulates, and controls the financial system of the economy knows as Central Bank. The financial institution which receives deposits from people and advances them money is known as Commercial Bank.
    • Also, Central Bank is the banker to banks, government, and the financial institution, whereas Commercial Bank is the banker to the citizens.
    • The Central Bank is the supreme monetary authority of the country. As against this, the commercial bank does not have such authority and powers.
    • Central Bank of India i.e. the Reserve Bank of India is governed by RBI Act, 1934. Conversely, the Commercial Bank is regulating by the Banking Regulation Act, 1949.
    • The Central Bank is a publicly own institution while the Commercial Bank can be a publicly or privately owned institution.
    • The Central Bank does not exist for making a profit, whereas a commercial bank operates for making a profit for its owners.
    • Also, Central Bank is the fundamental source of money supply in the economy. While the commercial bank does not perform such a function on the contrary.
    • There is only one Central Bank in every country, but the Commercial Banks are many which serve the whole country.
    • The Central Bank does not deal with the general public, but Commercial Bank does.
    • The Central Bank has got the authority to print and issue the notes. Also, on the other hand, the commercial bank does not have such authority.
    • Bank main purpose of the Central Bank is a public welfare and economic development. In contrast Commercial Bank, which runs for-profit motive.
  • The similarity between Financial and Management Accounting!

    The similarity between Financial and Management Accounting!

    Financial and management accounting plays an important part in the accounting information system. They co-exist in enterprise production and operation of management, constituting the modern enterprise accounting system together. Much information that management accounting required is from financial accounting, while financial accounting also put the established budget, standards organizations, and such daily accounting data from management accounting as the basic premise. Also learned, Creative Accounting, The similarity between Financial and Management Accounting!

    Learn, Explain The similarity between Financial and Management Accounting! 

    Management accounting is used primarily by those within a company or organization. Reports can generate for any period of time such as daily, weekly, or monthly. Reports are considering to be “future looking” and have forecasting value to those within the company. The main function of management accounting in the enterprise is to establish a variety of internal accounting control systems and provide internal management needs of a variety of data and information to improve operational efficiency and effectiveness.

    Financial accounting is used primarily by that outside of a company or organization. Financial reports are usually created for a set period of time, such as a fiscal year or period. The reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company.

    However, the reality is that financial and management accounting has been completely separated by an increasing number of companies, which according to their own accounting methods to double account the data at the aim of external reporting and internal management. It is hard to achieve information sharing between the two sets of data, resulting in the waste of resources and duplication of effort.

    Therefore, companies should integrate both accounting effectively together, and give full play to the function of the accounting information system to enable enterprises to obtain the dual needs of management and finance at the lowest financial cost.

    Similarities Between Financial and Management Accounting!

    What are the similarities? It is can be below are;

    Financial accounting:

    They focus on external services, but internal services are also including. The information which financial accounting provided on the funding, costs, profits, and other information is very important for business management. In particular, financial statements can comprehensive and reflect all aspects of the enterprise’s financial position and operating results. Study of the financial statements can grasp the overall situation of the enterprises, managers must first be aware of the overall situation, so that guide enterprises to continuously move forward.

    Therefore, managers must pay close attention, and be very concerned about the information providing by financial accounting. At the basis of the analysis of financial accounting, the plan could develop to enhance control and make a scientific decision, how to further improve management and increase economic efficiency could also study. So we can not say financial accounting is just the external services, not domestic services, we can only say that financial accounting focuses on external services.

    Management accounting:

    They focus on internal services, but it also contains external services. Investors and creditors concern about the enterprise’s financial position and operating results. To improve the enterprise’s financial position and operating results. Precondition can only base on strengthening internal management and improving. The work’s quality and effectiveness in the aspects of production and management. In this regard, management accounting contributes a lot to correct business decisions and the timely provision of useful information. At the same time, investors and creditors in their decision-making. Also, need to know several economic information provided by management accounting. Which has important reference value when they make the right judgments and policy decisions.

    Management accounting must obtain a variety of information from the different channels for planning and control of production and business activities. Such as financial information, statistics, business accounting information, and other relevant information. The most basic of which is financial information. Financial accounting has a fixed set of procedures and methods. Information will form according to some time production and business activities and their results through the registration books, weaving statements, etc. Which is not only for external use but also for internal use. Management accounting can develop base on financial information, making management accounting information to facilitate regulation, control, and decision making.

    The similarity between Financial and Management Accounting
    The similarity between Financial and Management Accounting, #Pixabay.
    Similarity:

    The functions of accounting are accounting and supervision. They have agreed to subordinate to the general requirements of a modern enterprise accounting. This means the users of accounting information provide relevant information, to achieve enterprise internal objectives and meet the requirements outside the enterprise. So the ultimate goal of accounting is the same.

    Both accounting is facing with self-improvement and development. They have to confront the reality of a common problem: how to use modern computer technology to collect, process, store, transmit, and report the accounting information; at the same time. They need to handle the demands of modern management properly according to the organization and implementation of accounting management.

  • Difference between Cost and Financial Accounting

    Difference between Cost and Financial Accounting

    Cost Accounting and Financial Accounting Difference: Cost Accounting refers to that branch of accounting that deals with costs incurred in the production of units of an organization. A common question asked around, What is the Difference between Cost Accounting and Financial Accounting? On the other hand, financial accounting refers to the accounting concerned with recording financial data of an organization, to exhibit the exact position of the business. Also, take look at the difference between Cost and Management Accounting.

    Learn, Explain the Difference between Cost and Financial Accounting!

    Cost accounting generates information to keep a check on operations, to maximize profit and efficiency of the concern. On the other hand, Financial accounting ascertains the financial results, for the accounting period and the position of the assets and liabilities on the last day of the period. There is no comparison between these two because they are equally important for the users. This article presents you with the difference between cost accounting and financial accounting in tabular form.

    Definition of Cost Accounting:

    Cost Accounting is the field of accounting that uses to record, summarise, and report the cost information on a periodical basis. Its primary function is to ascertain and control costs. It helps the users of cost data to make decisions regarding the determination of selling price, controlling costs, projecting plans and actions, efficiency measurement of the labor, etc. also, Cost Accounting adds to the effectiveness of financial accounting by providing relevant information which ultimately results in the good decision-making process of the organization. It traces the cost incurred at each level of production, i.e. right from the input of the material till the output produced, every cost records.

    There are two types of Cost Accounting systems, they are:

    • Non – Integrated Accounting System: The accounting system in which a separate set of books is maintaining for cost information.
    • Integrated Accounting System: The accounting system in which cost and financial data are maintaining in a single set of books.

    Definition of Financial Accounting:

    Financial Accounting is the branch of accounting, which keeps the complete record of all monetary transactions of the entity and reports them at the end of the financial period in proper formats that increases the readability of the financial statements among its users. Also, The users of financial information are many i.e. from internal management to outside parties. Preparation of financial statements is the major objective of financial accounting in a specified manner for a particular accounting period of an entity.

    It includes an Income Statement, Balance Sheet, and Cash Flow Statement which helps in, tracing out the performance, profitability, and financial status of an organization during a period. Also, the information provided by financial accounting is useful in making comparisons between different organizations and analyzing the results thereof, on various parameters. In addition to this, the performance and profitability of various financial periods can also be compared easily.

    Comparison of Cost and Financial Accounting:

    Basis For Comparison Cost Accounting Financial Accounting
    Meaning: Cost Accounting is an accounting system, through which an organization keeps the track of various costs incurred in the business in production activities. Financial Accounting is an accounting system that captures the records of financial information about the business to show the correct financial position of the company on a particular date.
    Information type: Also, Records the information related to material, labor, and overhead, which are used in the production process. Records the information which are in monetary terms.
    Which type of cost is used for recording? Both historical and pre-determined cost Only historical cost.
    Users: Information provided by the cost accounting uses only by the internal management of the organization like employees, directors, managers, supervisors, etc. Also, Users of the information provided by financial accounting are internal and external parties like creditors, shareholders, customers, etc.
    Valuation of Stock: At cost Cost or Net Realizable Value, whichever is less.
    Mandatory: No, except for manufacturing firms it is mandatory. Yes for all firms.
    Time of Reporting: Details provided by cost accounting are frequently prepared and reported to the management. Financial statements are reported at the end of the accounting period, which is normally 1 year.
    Profit Analysis: Generally, the profit is analyzed for a particular product, job, batch, or process. Income, expenditure, and profit are analyzed together for a particular period of the whole entity.
    Purpose: Reducing and controlling costs. Also, Keeping a complete record of the financial transactions.
    Forecasting: The forecasting is possible through budgeting techniques. The forecasting is not at all possible.

    The upcoming discussion will update you on the difference between cost and financial accounting.

    The Difference in Cost Accounting:

    The following difference below are;

    • Cost Accounting explains the prin­ciples, techniques, and methods for ascertaining the cost and to find out the variance in comparison with the standard and enquire reasons for such variation.
    • The objective of cost accounting is to ascertain the cost and allocates the same in respective places.
    • It applies to the manufacturing and service industries.
    • Also, Cost accounting supplies necessary information’s to the management for decision-making purposes.
    • Stocks are valued as per cost price in cost accounting.
    • Cost accounting determines the profit or loss of each item of product, process, etc.
    • There is no particular period for ascertaining the cost of a product.
    • Also, Cost accounting is based on the concept of costing principles.
    • They include data based on facts and figures and also on some estimates.
    • Also, Cost accounting considers the requirements of Sec. 209(1) of the Companies Act.
    • Cost accounting control, material labor and overhead costs with the help of Standard costing, Budgetary control, etc.
    • Usually, cost accounting provides services to internal management.
    The Difference in Financial Accounting:

    The following difference below are;

    • Financial accounting maintains records for keeping accounts rela­ting to all monetary transactions.
    • The objective of financial accoun­ting is to maintain records and to prepare final accounts.
    • It is applicable in all cases.
    • Also, Financial accounting supplies information’s to the management relating to profit or loss and financial positions.
    • In financial accounting, stocks are valued as per cost price or market price whichever is lower.
    • Financial accounting shows the profit or loss of a firm as a whole at a particular date.
    • In Financial Accounting, accounts are prepared periodically, usually at the end of the period.
    • Also, Financial accounting bases on the concept of GAAP.
    • Financial accounting takes data based on facts and figures only.
    • They meet the requirements of the Companies Act 1956, Sales Tax, Income-Tax, etc.
    • Financial accounting does not have any tool to control the financial tran­saction of the business.
    • Also, Financial accounting provides information to the internal as well as external users of accounting information.

    The Main point of Differences Between Cost and Financial Accounting:

    Difference between Cost and Financial Accounting
    Difference between Cost and Financial Accounting

    The following are the major differences between cost accounting and financial accounting:

    • Cost Accounting aims at maintaining the cost records of an organization. Also, Financial Accounting aims at maintaining all the financial data of an organization.
    • Cost Accounting Records both verifiable and pre-decided costs. On the other hand, Financial Accounting records just chronicled costs.
    • Also, Clients of Cost Accounting are restricted to interior administration of the element; though clients of Financial Accounting are inside just as outside gatherings.
    • In cost, accounting stock qualities at cost while in financial accounting, the stock qualities at the lower of the two for example cost or net feasible worth.
    • Cost Accounting is obligatory just for the association which participates in assembling and creative exercises. Then again, Financial Accounting is obligatory for all associations, just as consistent with the arrangements of the Companies Act and Income Tax Act, is additionally an unquestionable requirement.
    • Also, cost Accounting data reports intermittently at continuous spans; yet financial accounting data reports after the fruition of the financial year for example for the most part one year.
    • Cost Accounting data decide benefit identified with a specific item, work, or cycle. Instead of Financial Accounting, which decides the benefit for the entire association made during a specific period.
    • Also, the motivation behind Cost Accounting is to control costs; yet the reason for financial accounting is to keep total records of the financial data, in light of which detailing should be possible toward the finish of the accounting time frame.
  • Difference between Cost and Management Accounting

    Difference between Cost and Management Accounting

    Cost and Management Accounting Difference; Cost accounting is a branch of accounting that aims at generating information to control operations to maximize profits and the efficiency of the company, that is why it is also termed control accounting. A common question asked around, What is the difference between the Cost Accounting and Management Accounting? Conversely, management accounting is the type of accounting that assists management in planning and decision-making and is thus known as decision accounting. Also learned, Financial and Management Accounting.

    Learn, Explain the Difference between Cost and Management Accounting.

    The two accounting system plays a significant role, as the users are the internal management of the organization. While cost has a quantitative approach, i.e. it records data that is related to money, management emphasizes both quantitative and qualitative data. Now, let’s understand the difference between cost accounting and management accounting, with the help of the given article.

    Definition of Cost Accounting:

    They are a method of collecting, recording, classifying, and analyzing the information related to cost. Also, the information provided by it is helpful in the decision-making process of managers. There are three major elements of cost which are material, labor, and overhead. The main aim of cost accounting is to track the cost of production and fixed costs of the company. Also, this information is useful in reducing and controlling various costs. It is very similar to financial accounting, but it is not reported at the end of the financial year.

    Definition of Management Accounting:

    Management Accounting refers to the preparation of financial and non-financial information for the use of management of the company. It is also termed managerial accounting. Also, the information provided by it helps make policies and strategies, budget, forecasting plans, making comparisons, and evaluating the performance of the management. The reports produced by management accounting are used by the internal management of the organization, and so they are not reported at the end of the financial year.

    Comparison of Cost and Management Accounting:

    The Basis of Comparison Cost Accounting Management Accounting
    Meaning The recording, classifying, and summarizing of cost data of an organization is known as cost accounting. Also, the accounting in which both financial and non-financial information is provided to managers knows as Management Accounting.
    Information Type Quantitative. Quantitative and Qualitative.
    Objective Ascertainment of cost of production. Providing information to managers to set goals and forecast strategies.
    Scope Concerned with ascertainment, allocation, distribution, and accounting aspects of cost. Impart and effect aspect of costs.
    Specific Procedure Yes No
    Recording Records past and present data It gives more stress on the analysis of future projections.
    Planning Short-range planning Short-range and long-range planning
    Interdependency Can install without management accounting. Cannot install without cost accounting.

    The upcoming discussion will help you to differentiate between cost and management accounting.

    The main difference between Cost and Management Accounting:

    The following difference below are;

    Objective:

    The primary objective of Cost Accounting is to ascertain the cost of production as well as to control the same after careful analysis. On the other hand, the primary objective of Management Accounting is to supply the accounting information to the management for taking the proper decision.

    Method:

    In Cost, accounts are prepared according to predetermined standards and budgets. But in Management reports are submitted to the management after measuring the variance between the actual performances and the budgets. As a result, past errors and defects may rectify and, thereby, efficiency improves.

    Accounting System:

    The Double Entry System can apply in Cost Account, if necessary, whereas this is not adopting in the case of Management Account.

    Accounting Period:

    Normally, in Cost, statements of the current year’s activities are to prepare, i.e., importance is not according to future activities while, in Management, primarily future activities are considering.

    Management Accounting relates to the whole affair of the concern, the capacity for making profits or losses, and the expectation for the future. To discharge its duties properly, it has to depend on both Financial Accounting and Cost Accounting. Therefore, Management Accounting may regard as the expansion of these two forms of accounting, viz., Financial Account, and Cost Account.

    The main points of the difference between Cost and Management Accounting:

    • The accounting related to the recording and analyzing of cost data is cost account. Also, the accounting related to producing information which uses by the management of the company is management account.
    • Also, Cost provides quantitative information only. On the contrary, Management provides both quantitative and qualitative information.
    • Cost is a part of Management as the information uses by the managers for making decisions.
    • The primary objective of Cost Accounting is the ascertainment of the cost of producing a product but the main objective of management accounting is to provide information to managers for setting goals and future activity.
    • There are specific rules and procedure for preparing cost accounting information while there is no specific rules and procedures in case of management accounting information.
    • The scope of Cost Account limits to cost data however the Management Account has a wider area of operation like the tax, budgeting, planning and forecasting, analysis, etc.
    • Cost related to the ascertainment, allocation, distribution, and accounts face of cost. On the flip side, management associates with the impact and effect aspect of cost.
    • They stress short-range planning, but management accounting focuses on long and short-range planning, for which it uses high-level techniques such as probability structure, sensitivity analysis, etc.
    • While management accounting can’t install in the absence of cost accounting; Also, cost accounting has no such requirement, it can install without management accounting.
    Difference between Cost and Management Accounting
    Difference between Cost and Management Accounting.
  • Difference between the Financial and Management Accounting

    Difference between the Financial and Management Accounting

    Financial Accounting and Management Accounting are two interrelated facets of the accounting system. A common question asked around, What is the primary difference between the Financial and Management Accounting? Financial accounting provides the basic structure for collecting data. The data collection structure is suitably modifying or adjusts for accumulating information for management accounting purposes. They are not exclusive of each other; they are supplementary.

    What is the Difference between Financial and Management Accounting? Discussion.

    In a broader sense, management accounting includes financial accounting.  They differ in their emphasis and approaches.

    Difference between Financial and Management Accounting - Table
    Difference between Financial and Management Accounting – Table

    Basic Difference:

    They are as follows;

    1. Financial serves the interest of external users (i.e. investors etc.) while management caters to the needs of internal users (i.e. management).
    2. Financial accounts govern by the generally accepted accounting principles while management accounts no set principles.
    3. The Financial presents historical information while management represents predetermined as well as past information.
    4. Financial accounts statutory while management accounts optional.
    5. Financial accounting presents annual reports while management accounting reports are of both shorter and longer durations.
    6. The Financial reports cover the entire organization while management reports are prepared for the organization as well as its segments.
    7. The financial account emphasizes the accuracy of facts while the management account requires prompt and timely reporting of facts even if they are less precise.

    This article will explain to you the difference between financial accounting and management accounting.

    Focus:

    Financial accounting emphasized the external use of accounting data. Management accounting, on the other hand, utilizes accounting data for internal uses. The major objective of financial accounting is to prepare a balance sheet and profit and loss account to inform shareholders and others about the firm’s profitability and the state of its resources and obligations.  The purpose for which management accounting collects and reports relevant information is to make decisions to ensure optimum use of the firm’s resources.

    Principle: 

    The accounting profession has developed certain principles for preparing and presenting financial reports for external uses.  Financial accounting adheres to these generally accepted accounting principles. This introduces consistency and meaningfulness of data from the investors’ point of view. They can make inter-firm comparisons of performance and analyze performance trends over the years when some set of generally accepted principles are followed by all firms.

    Management accounting, in contrast, is not based on any set of accepted rules or principles. Every enterprise, depending on its requirements for facts, evolves its procedures and principles for preparing reports for internal uses.  The information should be relevant and aid management in making decisions.

    Information:

    Financial accounting accumulates and reports historical information to investors. Financial accounting reports tell what has happened in the past.  Through balance sheet and profit and loss account, to the investors is revealed how the resources entrusted by them to the firm have been utilized.  Management accounting being a decision-making process focuses on the future.  It analyses past data and adjusts them in the light of future expectations to make plans.

    Need:

    Financial accounting is an outcome of the statute.  For example, in India, it requires under the Companies Act, 1956 to prepare the balance sheet and profit and loss account for submission to shareholders and others.  The financial statements are generally required to prepare in the formats prescribed by the law.

    Management accounting is the result of the management’s need for information for making decisions.  It is, therefore, optional.  Management accounting functions would differ from firm to firm. A firm may have a sophisticated, elaborate, and comprehensive system while another may have a partial system only.

    Timing:

    Financial accounting adopts twelve months (one Year) period for reporting financial performance to shareholders and other investors.  In contrast, management accounting reports are for shorter durations.  Some companies in India prepare daily budgets.  Monthly and quarterly reports are quite common.  Management accounting information also collects for preparing long-term plans for five or more years.  Capital expenditure plans, for example, cover a longer duration.

    Coverage:

    While reporting the state of affairs of a company, financial accounting covers the entire organization.  Financial statements show revenues, expenses, assets, and equities of the firm as a whole.  For management accounting purposes, however, the organization is divided into smaller units or centers.  These centers may head by responsible persons.  Cost data and other information are collecting and reporting by these centers. Thus, the data requirements of management accounting are more specific.

    Reporting:

    Financial statements-balance sheet and profit and loss account – are subject to the verification of statutory audit.  Therefore, financial accounting stresses the accuracy and precision of accounting data.  Management accounting requires information promptly for decision-making.  The continuous and speedy flow of approximate information is more useful than the precise but delayed information.

    The above points of difference between Financial Accounting and Management Accounting (Hindi Medium) prove that Management Accounting is a flexible approach as compared to the rigid approach in the case of Financial Accounting. In brief, financial accounting simply shows how the business has moved in the past while management accounting shows how the business has to move in the future.

    Difference between Financial and Management Accounting
    Difference between Financial and Management Accounting.
  • Discuss the Compare of Coordination and Cooperation

    Discuss the Compare of Coordination and Cooperation

    Before Discuss the Compare of Co-Ordination and Co-Operation, first looking at their definition of Coordination and Cooperation. Coordination refers to the organization of all the activities in an orderly manner, to achieve unanimity of individual efforts in the pursuit of group goals. On the flip side, cooperation is a discretionary action of individuals to work together or help one another, for a mutual benefit. It is a joint effort of the members working in the organization for accomplishing a defined target. Also Learned, Essay on the Co-ordination of an Organization, Discuss the Compare of Coordination and Cooperation.

    Here are Learn, Discuss the Compare of Coordination and Cooperation.

    Definition of Coordination:

    By coordination, we mean a cycle, utilized by the administration to synchronize different exercises in the association. The power connects the wide range of various capacities performed by the administration, for example arranging, coordinating, putting together, controlling, staffing, driving, and so forth association, to make the most ideal utilization of the association’s assets.

    Coordination assumes a critical function in keeping up routineness in tasks, for example, buy, creation, deals, human asset, showcasing, account, and so forward, as it is the consistent idea that associates all the exercises. It is something, which is natural in all administrative capacities. The cycle focuses on the efficient administration of individual or collective endeavors to guarantee unanimity in real life, in the achievement of normal destinations.

    Definition of Cooperation:

    We characterize cooperation as an optional action in which at least two people consolidate and work in the quest for shared objectives. In this cycle, the individuals from the association put forth joined attempts, for inferring common advantages. Along these lines, each member is required to effectively partake in the gathering movement, really at that time they can be in an ideal situation.

    Cooperation is available in all the degrees of the association and happens between the individuals from the association. Aside from business, cooperation likewise happens at the public and worldwide level, for example between various states and nations of the world.

    Through cooperation, the data can share among members effectively, which builds the information base, work performed, and assets, in a skilled way.

    Differences between Coordination and Cooperation:

    Basis Coordination Cooperation
    Meaning It is an orderly arrangement of group efforts in pursuit of common goals. It means mutual help willingly.
    Scope It is broader than co-operation which includes as well because it harmonizes the group efforts. It is termed as a part of coordination.
    Process The function of coordination is performed by top management. The functions of co-operation are prepared by persons at any level.
    Requirements Co-ordination is required by employees and departments at work irrespective of their work. Co-operation is emotional in nature because it depends on the willingness of people to work together.
    Relationship It establishes formal and informal relationships. It establishes an informal relationship.
    Freedom It is planned and entrusted by the central authority & it is essential. It depends upon the sweet will of the individuals and therefore it is not necessary.
    Support It seeks wholehearted support from various people working at various levels. Co-operation without co-ordination is fruitless & therefore it may lead to unbalanced developments.

    Therefore, the existence of co-operation may prove to be an effective condition or requisite for co-ordination. But it does not mean that co-ordination originates automatically from the voluntary efforts of the group of members. It has to be achieved through conscious & deliberate efforts of managers, therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination without co-operation has no root.

    Discuss the Compare of Coordination and Cooperation Image
    Discuss the Compare of Coordination and Cooperation; Image from Pixabay.

    The Main Key Differences Between Coordination and Cooperation:

    The following points are noteworthy so far as the difference between coordination and cooperation is concerned:

    • The methodical game plan and synchronization of various components of the executives to guarantee, smooth working, know as coordination. The demonstration of working together or following standards, for the acknowledgment of shared objectives, calls cooperation.
    • Coordination is a basic action of the board; that helps in accomplishing agreement in real life among different related exercises and branches of the association. Actually, cooperation relies upon the desire of any individual, for example, to work with or help somebody willfully, for achieving regular destinations.
    • Coordination of a devise cycle performed to incorporate various exercises of the association. Then again, cooperation is a characteristic cycle, which isn’t arranged however happens precipitously, out of shared regard.
    • Coordination is a persistent capacity of the board. Thus, it is as long as possible. As against this, the cooperation of people is needed for achieving an errand or movement, consequently, it is for the momentary as it were.
    • Coordination may bring about the foundation of formal and casual connections. Dissimilar to, cooperation offers to ascend to the casual connection between people.
    • In coordination, there is open correspondence between all the individuals from the association. As restricted, implicit correspondence happens between people in cooperation.
    • Coordination of exercises performs at high-level administration, though cooperation performs at each level.

    Relationship Between Coordination and Cooperation:

    Co-ordination is a systematic plan of collective endeavors to give solidarity of activity in the quest for common destinations. It implies uniting the endeavors of various components of the association to give them the solidarity of direction. While cooperation indicates the collective endeavors of individuals working in the association intentionally to accomplish a specific reason.

    The presence of co-operation among the individuals from a gathering encourages co-ordina­tion. In any case, coordination doesn’t start from the deliberate endeavors of the gathering individuals. It must accomplish by the conscious endeavors of the administration.

    For example, five people occupied with pushing a taxi out of the mud have a solid demeanor of co-operation. Be that as it may, they may not be effective except if one of them gives leader­ship and coordinates the exercises of all. Similarly, the ensemble conductor coordinates the endeavors of the individuals from his gathering to delivering fine music.

    So, co-operation without co-ordination has no organic product, and coordination without co-operation has no root. Co-operation and co-ordination go hand in hand and one is the venturing stone of the other. A decent chief attempts to accomplish both because just through cooperation and coordination he can complete things through others.

  • Difference between Internal and External Sources of Recruitment

    Difference between Internal and External Sources of Recruitment

    Internal and External Sources of Recruitment Difference: Recruitment is the process of attracting the potential candidates and motivating them to apply for the jobs or selecting skilled and right candidates from the pool of applicants and appointing them for the right jobs. Her strategic thinking and decision-making can help in finding potential candidates. Also, human resources are one of the scarce resources and it is becoming a challenge to find the right candidate for the right job in the organizations. Also learn, Recruitment.

    Learn, What is the difference between Internal and External Sources of Recruitment?

    So organizations are approaching consultancies to find skilled and efficient employees to get a competitive advantage. Approaching recruitment agencies can give better results, but it is expensive and may not suitable for all organizations.

    Recruitment involves searching for the right candidates and motivating them to apply for the openings in the organization. Here sources of recruitment are two types i.e., Internal and External Sources of Recruitment of Employees!

    This article will help you to differentiate between internal and external sources of recruitment.

    The Difference Internal Sources:

    The following content is below, also learn, What is the Internal Sources of Recruitment?

    1. In the case of internal sources of recruitment, the management has a restricted choice vis-a-vis, the source out of which recruitment shall be done, as the only person available is either the existing or ex-employees of the organization.
    2. The cost of recruiting from internal sources is nil or negligible.
    3. Not much time is involved in recruiting personnel from internal sources; as employees are already available with the organization. Further, ex-employees of the organization could trace without taking much time.
    4. Selection formalities are minimum; as candidates from internal sources had already gone through detailed selection-procedure earlier. This saves, again time and cost, involving in undertaking the selection procedure.
    5. Candidates from internal sources, do not require any orientation (i.e. introduction); as this personnel is already familiar with various aspects of the organization, and it’s functioning.
    6. Only limited talent is available when personalized recruiting from internal sources. Their talents – existing and potential are already known to management.
    7. Candidates comprised of internal sources are said to have high morale; especially in cases of recruitment for promotion purposes
    8. The phenomenon of labor turnover is likely to minimize; when employees of the organization wait for their chances for promotion – especially in cases of time-bound promotions.
    9. Candidates picked up from internal sources quite advance in age; as they have already served the organization, for some time, in the past.
    10. Candidates from internal sources might or might not be suitable for newer types of jobs, arising in the organization.

    The Difference External Sources:

    The following content is below, also learn, What is the External Sources of Recruitment?

    1. In case of external recruitment, the management has quite a wide choice vis-a-vis, the sources out of which recruitment could do; as a large number of sources are available – which could compare based on their relative worth. And best sources of recruitment can finalize, based on such relative analysis.
    2. The cost of recruiting from external sources is from moderate to considerable – depending on particular sources.
    3. A detailed selection procedure has to undertake for carefully selecting candidates, from external sources. This also means time and cost, involving in undertaking the selection procedure.
    4. Much time is involving in recruiting personnel from external sources; as people take time to notice vacancies and yet take more time again to apply for jobs, to the organization.
    5. Needless to say that candidates from external sources require ori­entation; being absolutely new to the organization. This neces­sitates orientation training programs for them.
    6. Extra-ordinary talented personal might procure, from exter­nal sources – depending on the particular sources finalize for recruitment, and on chance fac­tor also.
    7. New candidates from external sources could not expect to have high morale for the organization, at least initially i.e. at the time of joining the organization.
    8. Labor turnover is quite likely; in case organizational jobs do not suit the recruits.
    9. Candidates from external sources are usually of a lower age i.e. belong to the young group of the population. In fact, minimum and maximum ages are an important requirement for candidates from external sources.
    10. For newer types of jobs, suitable candidates might recruit from a variety of external sources of recruitment.
    What is the Difference between Internal and External Sources of Recruitment - ilearnlot
    Difference between Internal Sources of Recruitment and External Sources of Recruitment
  • Difference between Recruitment and Selection Process

    Difference between Recruitment and Selection Process

    Recruitment and Selection Process Difference: The recruitment and selection process is one of the most important aspects of running new and established businesses alike. The right employees can take your business to new heights. The wrong ones can hurt business by missing sales, turning customers off, and creating a toxic workplace environment. Follow experts’ advice on each step of the recruitment and selection process to put together a team that fits with and enhances your business culture, goals, and objectives. Also learn, the Principles of Learning in Training, What is the difference between the Recruitment and Selection Process?

    Learn, What is the difference between Recruitment and Selection Process?

    Recruitment: “Recruitment” is the process of finding and hiring the best and most qualified candidate for a job opening, in a timely and cost-effective manner. It can also define as the “process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization”.

    It is one whole process, with a full life cycle, that begins with the identification of the needs of the company concerning the job, and ends with the introduction of the employee to the organization.

    Selection Process: Employee Selection is the process of putting the right men on the right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can do only when there is effective matching. By selecting the best candidate for the required job, the organization will get the quality performance of employees. Moreover, an organization will face less absenteeism and employee turnover problems. By selecting the right candidate for the required job, an organization will also save time and money. Proper screening of candidates takes place during the selection procedure.

    This article will help you to differentiate between the recruitment and selection process.

    The Difference in Recruitment:

    1. In recruitment, the purpose is to locate or find out probable candidates.
    2. Recruitment is positive, in that the management interests in maximizing the number of personnel on the recruitment list; because the larger is the number of persons on the recruitment list – the more is the probability of a better selection.
    3. Recruitment initiates the procurement aspect of personnel management.
    4. Also, Recruitment is done much in advance of time; when candidates would need for placement on various jobs in the organization.
    5. Recruitment involves less cost. The only costs involved relate to contacting personnel through different sources. Explain are the Features, Nature, Characteristics of Planning!

    The Difference in Selection:

    1. In selection, the purpose is to select candidates finally for appointment to various jobs in the organization.
    2. Selection is a negative process. It is a process of systematic elimination of unsuitable candidates at different stages of the selection procedure. Only the most suitable ones can reach up to the placement stage. The number of candidates selected is far less than the number appearing on the recruitment list
    3. Selection completes the procurement aspect of personnel management.
    4. Also, Selection is done slightly in advance of time; when candidates would need for placement on various jobs, in the organization. In case, the selection is done much in advance of the required time, the management would have problems as to retaining them up to the required time.
    5. The selection procedure is not only money consuming; but also time and efforts consuming. Suitable arrangements have to make for designing and implementing an appropriate selection procedure; because of the nature of the job for which people have to select.
    The Difference between Recruitment and Selection Process - ilearnlot
    Difference between Recruitment Process and Selection Process
  • What is the Difference Between Money and Capital Market?

    What is the Difference Between Money and Capital Market?

    Money and Capital Market Difference; What the differences between things are you first need to understand what each of the items is. In this case, before you can understand the difference between the money market and the capital market, you are going to need to understand. What money market is and what capital markets are. Once you understand the two items are it will be easier to see what the difference or differences are between the two markets. Also learn, What is the Difference Between an Intrapreneur and Entrepreneur? the Difference Between Money and Capital Market!

    Learn and Understand, the Difference Between Money and Capital Market!

    The following Difference below is:

    What is the Money Market?

    The money market is the global financial market for short-term borrowing and lending and provides short-term liquid funding for the global financial system. The average amount of time that companies borrow money in a money market is about thirteen months or lower. Some of the more common types of things used in the money market are certificates of deposits, bankers’ acceptances, repurchase agreements, and commercial paper to name a few.

    What the money market consists of are banks. That borrow and lend to each other, but other types of finance companies are involving in the money market. What usually happens is the finance companies fund themselves by issuing large amounts of asset-backed commercial paper. That is securing by the promise of eligible assets into an asset-backed commercial paper conduit. Your most common examples of these are auto loans, mortgage loans, and credit card receivables.

    What is Capital Market?

    The capital market is a type of financial market. It includes the stocks and bonds market as well. But in general, the capital market is the market for securities. Where either companies or the government can raise long-term funds. One way that the companies or the government raise these long-term funds is through issuing bonds.

    Which is where a person buys the bond for a set price and allows the government or company to borrow. Their money for a certain time but they are promising a higher return for allowing them to borrow the money. The higher return is paying through the interest that accrues on the money that the government or company borrows. The Difference between Revaluation and Realization Account!

    Another way that the companies or government can raise money in the capital market is through the stock market. Most of the time you don’t see the government as a part of the stock market. But it can happen so we need to include them. But how the stock market works is that the companies decide to sell shares of their stock. Which is ownership in the company, to ordinary people and other companies, as a way to raise money. The people who buy the stock are usually given dividends each year if the company agrees to pay out dividends. So, that is another possible return on their investment.

    The capital market consists of two markets. The first market is the primary market and it is where new issues are distributing to investors and the secondary market where existing securities are trading. Both of these markets are regulating so that fraud does not occur and in India, the Securities and Exchange Board of India (SEBI) is in charge of regulating the capital market.

    The Difference Between Money and Capital Market!

    The difference between the money market and capital market is that money markets are more of a short-term borrowing or lending market. Where banks borrow and lend between each other. As well as, finance companies and everything that is borrowing, is usually paying back within thirteen months. Whereas capital markets are for long-term investments, companies are selling stocks and bonds to borrow money from.

    Their investors to improve their company or to purchase assets. Another difference between the two markets is what is being used to do the borrowing or lending. In the money markets, the most common things used are commercial paper and certificates of deposits. Whereas with the capital markets the most common thing used is stocks and bonds.

    The money market is distinguishing from the capital market based on the maturity period, credit instruments, and the institutions, the Difference Between Money and Capital Market:

    Basic Role:

    The basic role of the money market is that of liquidity adjustment. The basic role of the capital market is that of putting capital to work, preferably to long-term, secure, and productive employment. Learn about the Difference Between Management and Leadership!

    Maturity Period:

    The money market deals with the lending and borrowing of short-term finance. While the capital market deals in the lending and borrowing of long-term finance.

    Credit Instruments:

    The main credit instruments of the money market are called money, collateral loans, acceptances, bills of exchange. On the other hand, the main instruments used in the capital market are stocks, shares, debentures, bonds, securities of the government.

    Nature of Credit Instruments:

    The credit instruments dealt with in the capital market are more heterogeneous than those in the money market. Some homogeneity of credit instruments is needed for the operation of financial markets. Too much diversity creates problems for investors.

    Institutions:

    Important institutions operating in the money market are central banks, commercial banks, acceptance houses, non-bank financial institutions, bill brokers, etc. Important institutions of the capital market are stock exchanges, commercial banks, and non-bank institutions. Such as insurance companies, mortgage banks, building societies, etc.

    Purpose of Loan:

    The money market meets the short-term credit needs of the business; it provides working capital to the industrialists. The capital market, on the other hand, caters to the long-term credit needs of the industrialists and provides fixed capital to buy land, machinery, etc.

    Risk:

    The degree of risk is small in the money market. The risk is much greater in the capital market. The maturity of one year or less gives little time for a default to occur, so the risk is minimizing. Risk varies both in degree and nature throughout the capital market.

    Relation with Central Bank:

    The money market is closely and directly linked with the central bank of the country. The capital market feels the central bank’s influence, but mainly indirectly and through the money market.

    Market Regulation:

    In the money market, commercial banks are closely regulating. In the capital market, the institutions are not much regulated.

    What is the Difference Between Money and Capital Market - ilearnlot
    What is the Difference Between Money and Capital Market?