Finance have very close relation with accounting. It is very important relation of business term that make us understand of various terms.
Accounting is concerned with keeping records, reporting and measurement of business transactions. Accounting and finance are inter-related subjects. Hence, a financial manager should be able to understand and correctly explain the accounting information's.
The accounting process produces raw materials necessary for financial decision making which is called financial data. If the financial records are bad, the financial decisions are also likely to be bad. Accounting is a sub-function of finance. Accounting consists of the statement of balance-sheet, statement of profit and loss, sources and uses of fund etc. such statements help the financial manager in evaluating past performance and determining the future direction of the firm.
Accounting is concerned with keeping records, reporting and measurement of business transactions. Accounting and finance are inter-related subjects. Hence, a financial manager should be able to understand and correctly explain the accounting information's.
The accounting process produces raw materials necessary for financial decision making which is called financial data. If the financial records are bad, the financial decisions are also likely to be bad. Accounting is a sub-function of finance. Accounting consists of the statement of balance-sheet, statement of profit and loss, sources and uses of fund etc. such statements help the financial manager in evaluating past performance and determining the future direction of the firm.
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