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Strata vs Stratum   Strata and stratum are special titles introduced by the government of Australia and later adopted by several other countries when it comes to ownership in apartments or flats. There is much overlapping in these two special types of titles that causes confusion in the minds for the people.... 
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Investment Property vs Second Home   The proverbial Great American Dream has undergone lots of changes in the last few decades and from the humble beginnings where a TV set was considered an absolute must in a household, the situation today is one of buying a second house after buying a primary residence.... 
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Accounting Profit vs Economic Profit   Profit, as known to many of us is the excess of income over the expenses incurred. When a sole trader sells a pair of shoes for $10 that cost $3 to produce, many would say that he earned a profit of $7. However, this may not be the case always, as there are different definitions... 
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Accounting Policies vs Accounting Estimates   The preparation of a company’s financial statements is of great importance in determining the firm’s financial stability and in understanding the firm’s ability to operate in the future without facing liquidity issues. Financial statements of the firm which... 
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Salary vs Income   Any individual requires some form of inflow of funds in order to purchase the goods and services that can satisfy their needs. Salary and income share common properties in that they are both forms of monetary inflows of funds that are received by an individual. The two are different from... 
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Financial vs Operational Auditing   Auditing is a systematic examination and verification of works or records by professionally qualified people, known as auditors, to make an independent opinion that the work done is fairly good and well on the track, as laid by professional bodies and the government, to... 
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Financial Assets vs Physical Assets   Assets are commonly known as anything with a value that represent economic resources or ownership that can be converted into something of value such as cash. Financial assets and physical assets, both represent such ownerships of value, even though they are very different... 
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Pyramid Scheme vs Ponzi Scheme   Were you too attracted to a company that promise unusually high rates of return on investment in its schemes? You are not alone as it is human nature to feel enticed to schemes with offers that are too good to be true. Two names Pyramid schemes and Ponzi schemes are used to... 
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Banking vs Finance   Banking and finance are two different matters of subject, collectively referring to the services provided by banking and non-banking financial institutions. The two terms are easily confused as the same thing but are quite distinct in terms of the content of the services provided by banking... 
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Balance Sheet vs Trial Balance   Companies prepare their financial statements at the end of the accounting period to obtain a clear understanding of the way resources have been utilized to improve profitability, and the manner in which the company’s assets, liabilities, capital, income and expenses have... 
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Balance Sheet vs Profit and Loss   The profit and loss statements of a company and the balance sheet must be prepared in order to arrive at a clear picture of the company’s financial stability. It is vital to note that the two refer to very different statements of financial information, with significant differences... 
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Profit vs Revenue Profit and revenue are two very important concepts that anyone desirous of doing business must understand beforehand. Profit is always financial benefit while revenue is the amount of money generated through business activities before expenditures are subtracted to arrive at profit figure. While... 
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Liabilities vs Expenses   Expenses and liabilities both represent an outflow of funds either to be incurred in the current period as an expense, or to be settled on a future date, in the case of a liability. The terms ‘expense’ and ‘liability’ represent different components in a company’s financial statements,... 
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Capital Expenditure vs Revenue Expenditure Expenditures are unavoidable for any company to exist in the competitive market, to expand the business or to find new opportunities to open up beneficial business in those areas, etc. Expenditure is defined as payments of cash or cash equivalent for goods or services,... 
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Banking vs Investment Banking Banking is one of the most closely regulated sectors in an economy that is also largely responsible for the country’s financial health and economic growth. Banking over the years has evolved to suit different purposes, and investment banking is one such formation to suit investment... 
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Stock Exchange vs Stock Market Stock exchange and stock market are two terms that are used commonly, and usually interchanged in conversation. Both the terms refer to a platform in which equity capital is obtained by firms, and are easily misunderstood to refer to the same thing. However, there are subtle differences... 
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