Difference Between Cash and Profit

Cash vs Profit   Cash and profit are two equally important components of any business. Cash is measured by the cash position and cash flow statement, whereas profits can be seen in the company’s profit and loss statements. Companies frequently face the dilemma as to whether they should focus on cash generation or profit maximization. […]

Difference Between Universal Life and Whole Life Insurance

Universal Life vs Whole Life Insurance   Universal life insurance and whole life insurance are permanent life insurance policies. These policies are similar in the fact that they are taken out for the same purpose; to provide financial security and benefits at death. There are, however, a number of differences between the two. Universal life […]

Difference Between Sales and Turnover

Sales vs Turnover   Sales and turnover are concepts that are similar to one another and are often used interchangeably on a company’s income statement. Sales and turnover represent the total value of the goods that are being traded by a firm which may either be from their core activities or from non-core activities. The […]

Difference Between Audit and Assurance

Audit vs Assurance   Auditing and assurance are processes that go hand in hand, and are usually used when evaluating a company’s financial records. Auditing and assurance are parts of the same process of verifying the information on the company’s accounting records for accuracy and compliance with the accounting standards and principles. Despite these similarities, […]

Difference Between Bond and Loan

Bond vs Loan   Bonds and loans are similar to one another in that they perform a similar function by lending money for which interest is charged. While the interest on loans can be fixed or variable, the interests on bonds are usually fixed. Bonds and loan operate in quite the same manner; however, there […]

Difference Between Duty and Tariff

Duty vs Tariff   Duties and tariffs are both forms of taxes that are imposed on the import and export of goods to and from foreign countries. Since both are taxes, they are not voluntarily offered and are usually forced onto businesses and individuals. Duties and tariffs are quite similar to one another in their […]

Difference Between Tax and Levy

Tax vs Levy   Any individual, firm, corporation, or legal entity will have to make a payment to their country’s government known as a tax payment. The funds that are collected through tax is the largest income that the government receives and is used for the running of government, investment, development, infrastructure, healthcare, public safety, […]

Difference Between Purchase and Acquisition (Method of Accounting)

Purchase vs Acquisition (Method of Accounting)   Mergers and acquisitions are complex scenarios in which one firm combines/purchases another firm’s assets, liabilities, technology, knowhow, innovation, patents, trademarks, etc. The accounting methodologies that are used in the process of recording such large transactions are also quite complex. Two such accounting methods are acquisition accounting and purchase […]

Difference Between Equity and Shares

Equity vs Shares   Equity and shares are concepts that are frequently used when discussing how business operations are financed. The two terms equity and shares are closely related to each other in that they both represent capital or ownership stake held in a company or in an asset. Due to their major similarities they […]