Difference Between Breakeven Point and Margin of Safety

Difference Between Breakeven Point and Margin of Safety

Breakeven Point vs Margin of Safety   Difference between breakeven point and margin of safety is a necessary knowledge to have as Breakeven Point (BEP) and Margin of Safety (MOS) are two concepts that carry a significant importance in decision making under cost accounting. Both of these concepts deal with costs, sales volumes, selling prices […]

Difference Between Absorption Costing and Variable Costing

Difference Between Absorption Costing and Variable Costing

Absorption Costing vs Variable Costing   Knowledge about the difference between absorption costing and variable costing is a must to do the product costing. Actually, success of a manufacturing business mainly depends on the way that the products are cost. There are different types of costs involved in a manufacturing environment. Particularly, the costs can be […]

Difference Between Income Statement and Cash Flow Statement

Difference Between Income Statement and Cash Flow Statement

Income Statement vs Cash Flow Statement   The key difference between income statement and cash flow statement is the basis that is used to prepare these statements; for the income statement it is the accrual basis whereas for cash flow concept it is mere cash basis. Income statement and cash flow statement are two types of […]

Difference Between Present Value and Future Value

Difference Between Present Value and Future Value

Present Value vs Future Value   Knowing the difference between present value and future value is very important for investors as present value and future value are two interdependent concepts that provide an utter help for the potential investors to make effective investment decisions; particularly for loans, mortgages, bonds, perpetuity, etc. By investing in an […]

Difference Between Statement of Affairs and Balance Sheet

Difference Between Statement of Affairs and Balance Sheet

Statement of Affairs vs Balance Sheet   The key difference between Balance Sheet and Statement of Affairs is that the balance sheet is one among the financial statements, which presents the financial position of a particular business to a given date while, in contrast, statement of affairs summarizes the assets and liabilities of a particular […]

Difference Between Balance Sheet and Statement of Financial Position

Difference Between Balance Sheet and Statement of Financial Position

Balance Sheet vs Statement of Financial Position   The balance sheet and statement of financial position are confused by many to be the same thing, but there are, however, a number of differences between balance sheet and statement of financial position. Both, balance sheet and statement of financial position, are financial statements that offer an […]

Difference Between NOPAT and Net Income

Difference Between NOPAT and Net Income

NOPAT vs Net Income   A clear understanding on the difference between NOPAT and net income is needed if you are to analyze the financial statements, especially the income statements, to study the performance of a business. The main aim of running a business is making a profit. In order to make a profit, the […]

Difference Between Cash Flow Statement and Cash Flow Projection

Difference Between Cash Flow Statement and Cash Flow Projection

Cash Flow Statement vs Cash Flow Projection   Those who are learning to understand different financial statements, must learn to understand the difference between cash flow statement and cash flow projection too as they provide two different views of the financial health of an organization. Businesses prepare a number of financial statements including income statements, […]

Difference Between Accruals and Prepayments

Difference Between Accruals and Prepayments

Accruals vs Prepayments   Both accruals and prepayments are equally important in accounting, and therefore, clear understanding on the key difference between accruals and prepayments is important for an accountant to ensure that they are accurately recorded. Accruals and prepayments are known as adjusting entries in the study of accounting. Both accruals and prepayments are important […]