Accounting and Finance Questions

Finance:It is the branch of economics that studies the management of money and other assets.In simpler terms it can be defined as the commercial activity of providing funds and capital.It addresses questions like -- what funds are required by the org & How they can be raised &  How they have to be allocated etc.

Accounts: It is the occupation of maintaining and auditing records and preparing financial reports for a business. Accounts provides quantitative information about finances. It addresses issues like what amount of funds have been allocated to various activities, how the book-keeping is being done etc.

Both functions are distinct but complimentary to each other.

Finance and accounts are highly specilized and distinct areas and hence most organizations have seperate sections of finance and accounts.

Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward in the pipeline.

The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.

You can use document parking to enter and store (park) incomplete documents in the SAP System without carrying out extensive entry checks.

The primary Economic function of the Financial system is to match one person's savings with another person's investment.

* As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.

* They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities.

* These financial services help to make the overall economy more efficient.

It is a process that recaculates the amount to pay an employess in the current period to account for retrospective changes that occurred in previous payroll periods.

After posting the all accounts in the Ledger a statement is prepared to showing debit and credit balances.Debit balances must be tally with the Credit side balance is called trial balance