Accounting can be considered as an information system that provides various tools to summarize financial performance or economic activities of an individual, family, organization or any other entity. The reports generated from an accounting system, aids the interested individuals, management, owners and creditors to make intelligent decisions in allocating resources. Financial management is the discipline which deals with management of money and assets, while Accounting is thus the tool used by a manager to manage and control finance. For example, the NPV or Net Present Value calculation (accounting tool) aids in deciding what kind of investment on which resources is most profitable (management decision) for the company in the long run.
Article Copyright - Deepesh Joseph (2003-2020)
Research Reference:
1. Williams C. (2007). Management (4th ed., ). Thomson South Western.
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