Difference between trading and investing

Introduction This article aims to define the terms “trading” and “investing” and then explaining the differences between two. Trading Trading is one of the many types of business activities carried out to earn profits. Trading is one of the simplest trading activity which involves buying and selling of finished goods. First important concept is that … Read moreDifference between trading and investing

Difference between statement of profit or loss and statement of financial position

Definitions and meanings: Financial statements: Financial statements are statements issued by large listed companies that show a formal record of financial activities of the business. Statement of financial position, statement of profit or loss, statement of cash flows, statement of changes in equity and disclosures notes to the accounts are five types of financial statements. … Read moreDifference between statement of profit or loss and statement of financial position

Difference between financial performance measurement and non-financial performance measurement

Definitions: Financial performance measurement: Financial performance measurement is a measure of financial health of a company. These measures are used to determine that how well a company is using its available resources in order to generate sustainable revenues and operating income. Non-financial performance measurement: Non-financial performance measurement is a measure for establishment of non-financial indicators … Read moreDifference between financial performance measurement and non-financial performance measurement

Difference between financial and managerial accounting

Definitions: Financial Accounting: Financial accounting is a branch of accounting that deals with the recording and summarizing of financial transactions and presenting information in form of financial statements that reflect a fair picture of financial health of a business. Management Accounting: Management accounting refers to such accounting which helps the management of a company to … Read moreDifference between financial and managerial accounting

Difference between executive and non-executive directors

Definitions and meanings: Executive Director: Executive directors are working employees of an organization who are responsible for the top strategic decision-making. The main domain of an executive director is the effective running of business operations. Each executive director has a specific duty to perform based on his department. Executive directors can also be called as … Read moreDifference between executive and non-executive directors