What is the difference between studying business, finance and accounting?

July 6, 2009 by MyOrbit · Leave a Comment
Filed under: Business, Employment, Money & Finance 

Question: What is the difference between studying business, finance and accounting?

Answer: Accounting is practice of tracking a business’s income and expenses and using those figures to evaluate its financial status which involves keeping a record of all financial transactions and then preparing financial statements such as balance sheets, income statements, cash flow statements, tax plans, etc. A basic understanding of Accounting is a must to be successful in understanding financial statements, and in being a business leader.

Study of finance teaches how to efficiently manage, and leverage, the financial resources (capital, illiquid assets like real estate, machines, etc), and to know analyze business risks vs returns. Furthermore, by studying finance, you will learn how to invest and how to raise money, and analyze the performance of investments and loans.

Study of business is a combination of accounting, economics, finance, marketing, legal/contracts, and organizational behavior. It enables you to understand all aspects of a business, which is essential for business success. You will learn from many real-life case studies about how business problems were solved.

Reference:  GSIBM.com (Graham School of Investing and Business Management)

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