Finance is the management of money and includes activities like investing, borrowing, lending, budgeting, saving, and forecasting. It encompasses the study of how individuals, businesses, and governments allocate resources over time. Key Characteristics / Core Concepts Investment: Allocating capital (money) with the expectation of generating a return. Borrowing: Obtaining funds with a promise to repay, … Read more
Bookkeeping is the recording of financial transactions for a business. It involves systematically recording all income and expenses. Key Characteristics / Core Concepts Systematic Record-Keeping: Maintaining detailed, organized records of all financial activity. Double-Entry Bookkeeping: A method where each transaction affects at least two accounts (debit and credit), ensuring the accounting equation remains balanced. Source … Read more
Accounting is the process of recording, summarizing, and reporting financial transactions of a business. It provides a structured way to track income, expenses, and assets. Key Characteristics / Core Concepts Financial Record-Keeping: Meticulous documentation of all monetary transactions. Summarization: Condensing vast amounts of data into meaningful reports. Reporting: Communicating financial information to stakeholders (owners, investors, … Read more