Accounting and Finance (masters)

Course Description

Accounting and finance can be differentiated as follows:

Accounting:

• Involves the recording and reporting of financial transactions and events that have taken place within an organization.
• Emphasizes the historical perspective, with a focus on producing financial statements and reports that provide information about past financial performance.
• Concerned with compliance, such as tax laws and regulations, and producing financial statements that accurately reflect the financial status of the organization.

Finance:

• Involves the management of an organization's financial resources to maximize wealth and meet financial goals.
• Emphasizes a forward-looking perspective, with a focus on making decisions about investment, financing, and risk management.
• Concerned with maximizing returns, evaluating investment opportunities, and making decisions about the best use of financial resources.

In short, accounting provides the data and financial statements that are the basis for making informed financial decisions, while finance uses that information to manage an organization's financial resources and make decisions that enhance its financial performance.