Difference Between

Current Balance vs Available Balance Have you been confused by the statement slip coming out of the ATM machine that mentions both current balance and available balance in your bank account? Often it so happens that you go to your bank presenting a withdrawal slip thinking that you have the money in your account,... 

Double Entry vs Single Entry An accounting system can be defined as an organized set of manual, accounting methods, procedures, and controls established to gather, record, classify, summarize, interpret, present timely and accurately for decision making. Book keeping is a process in which the financial records of... 

Journal vs Ledger Journal and ledger are two main words that often one come across either when studying the concepts of financial accounting or preparing financial statements. In the double entry system of accounting, ledgers and journals are playing a vital and important role. Before the preparation of final accounts,... 

Debit vs Credit Debit and credit are two concepts that are an integral part of any accounting system and also have great significance in lives of individuals in the form of debit and credit cards. Even a layman knows his account has been credited when he deposits money or a check drawn in his favor, and his account... 

Liability vs Indemnity Though, liability is a word that is used both in terms of individual as well as company level to describe what is owed to others, it is also used prominently in the insurance field. Here, it is used to describe the amount of money a person owes to another person or party for any damages caused... 

Net Profit vs Gross Profit Those who are into business know very well that there are glaring differences between gross and net profits and keep their profit margin at levels that they end up with some profit after taking into account all expenses. This is an important dichotomy for those who have never done business... 

Liability vs Provision Liability and provision are accounting terms that are spread all over financial statements on the obligation side of the statement. While liability and provision are differentiated on some accounts in some countries, accountants in some other countries treat them as same and make no differentiation.... 

Liability vs Debt Liability and debt are related concepts that are important to understand. At a personal level, an individual may take a loan from a bank to construct a home for his family or to buy a car. He repays this money in installments, and this loan is considered a debt of the person. He also has liabilities... 

Liability vs Asset Ask anyone in your circle about the assets he has, and invariably the answers would include home and car. But, is your car and asset for you? Or for that matter, your home, which you have bought after taking a loan from a bank? Most people remains confused and cannot answer this question. Understanding... 

Par Value vs Face Value Face value and par value are investment terms that are related to bonds and stocks; initial offerings are made available at par value of the face value to make them look attractive after listing, and the stocks mostly open at a rate higher than the face value bringing profits for the investor.... 

Absorption Costing vs Marginal Costing The system of computing the cost of production is known as costing. The main purpose of any costing system is to identify the cost incurred for the production of a unit output. In a manufacturing company, identifying the cost associated with a unit product is very important... 

Quick Ratio vs Current Ratio It is foolhardy to assess a company’s financial performance on the basis of one or two economic indicators as financial experts will tell you. However, in reality it is common for people to have a look at some of the common performance indicators to gain an insight into company’s... 

Economics vs Finance The words economics and finance, more or less, seem that they are conveying a similar meaning. In the world of business, theories of finance and economics are often used in important decision makings. In academic field, finance and economics have their own identity. In this article, we will... 

Pension vs Provident Fund Those who have worked in the industry for any length of time must be aware of these two wonderful schemes, to provide for money in times when it is needed most, that is in retirement or when one dies the money deposited in such funds is released to the family members. The major objective... 

Deficit vs Debt Debt is akin to a loan that a common man has taken from a bank. As long as he is able to pay back installments on time, he is said to be servicing the debt or loan normally. It is only when he is irregular or is not able to pay his installments for a few months that he is said to be running into... 

POSB vs DBS DBS bank, having its origins in the island country of Singapore is the largest bank is South East Asia. It was set up in 1968 by Singapore government to promote development through this financial institution. It was then known as The Development Bank of Singapore, and hence the name. The name was...