Finance vs

Accounting
Gabriela Bolnavu

Alina Stefan
Agenda
What is finance?

What is accounting?

Difference between finance vs.

accounting

Topic four

Conclusions

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Finance
What Is Finance?

Finance refers to the ways in which a person or

organization generates and uses capital—in other words,
how a given party manages their money. This often
encompasses activities such as investing, borrowing,
lending, budgeting, and forecasting.

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Accounting
Accounting, on the other hand, refers to the process
of reporting and communicating financial information
about an individual, business, or organization. Rather than
making strategic financial decisions, accounting captures
an accurate snapshot of a party’s financial position at a
specific point in time—a practice that results in the
information that finance activities are generally based
upon.

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Table

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 In accounting, we have
the “accounting
equation,” which is:

Assets = Liabilities + Owners' Equity.

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 In finance, when
assessing performance
through the lens of
finance, cash is king.

Finance looks at how effectively an organization generates and uses

cash through the use of several measurements. 9
Timeline

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Summary
Therefore, in finance, we combine accounting data and
business intelligence. Accounting is related to the recording and
reporting monetary transactions. However, finance is all about
taking decisions relating to buying/selling assets, investing,
making a budget and so forth.

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Thank You!
Gabriela Bolnavu & Alina Stefan

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