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 […]
Difference Between Term Deposit and Fixed Deposit
Term Deposit vs Fixed Deposit Term deposits and fixed deposits refer to deposits that are held in a bank for a fixed period of time. The two terms are used interchangeably and refer to the same types of deposits such as savings accounts and certificates of deposit. However, the term ‘fixed deposit’ is more […]
Difference Between Pension and Annuity
Pension vs Annuity Annuities and pensions are quite similar to one another in that they are both used for retirement purposes. However, annuities can also be taken out by any person for a number of different reasons, whereas a pension is provided by an employer solely for the purpose of retirement. Due to the […]
Difference Between Current and Noncurrent Assets
Current vs Noncurrent Assets Assets that are held by a company consist of two categories, which are current assets and noncurrent assets. Current assets are those assets that the company will hold with the intention of converting to cash in the short term. Noncurrent assets, on the other hand, are held for longer periods […]
Difference Between Savings and Investment
Savings vs Investment Saving and investing are both equally important to individuals and businesses. Savings are usually done to achieve short term payment goals and needs and are low risk in nature. Investments are made with the aim of making larger profits and, therefore, involve bearing higher levels of risk. The article that follows […]
Difference Between Mortgage and Hypothecation
Mortgage vs Hypothecation Mortgages and hypothecation are terms that are frequently used to explain loans that are taken out by individuals for the purpose of financing various assets. The similarity between the two is that in order for the loan to be granted an asset must be pledged to the bank; however, the ownership […]
Difference Between Mortgage Rate and APR
Mortgage Rate vs APR Mortgage rates and APR are both information that are provided to a borrower when taking out a mortgage loan. Since both rates are provided to the borrower when applying for a loan, many loan applicants are confused about how these rates are related to each other. The article offers a […]
Difference Between Trade Discount and Cash Discount
Trade Discount vs Cash Discount Discounts are a reduction on the price of the goods or services that are provided by the seller to the buyer. Discounts result in the buyer having to pay an amount less than the listed price for the products, and such discounts are usually offered for to encourage customers […]
Difference Between Savings and Checking Account
Savings vs Checking Account Savings accounts and checking accounts are the two most common types of accounts that are maintained by businesses and individuals. While both savings accounts and checking accounts help the individual or business to manage their funds in some way, they are quite different to one another in terms of the […]
Difference Between Reserve and Provision
Reserve vs Provision Provisions and reserves are important components in accounting. Reserves are seen as positive as they add onto the company’s profitability and can be used to provide for unexpected future losses, distribution among shareholders, or reinvestment in the business. Provisions, on the other hand, provide for any losses, expenses, liabilities, or depletion […]
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