Tag Archives | Difference

Difference between a Private Company and Public Company

The upcoming discussion will update you about the difference between Private Company and Public Company. (i) Minimum number: The minimum number of persons required to form a private company is two whereas in the case of a public company, it is seven. (ii) Maximum number: The maximum number of shareholders in the case of a […]

Difference between Debenture and Shares

The upcoming discussion will update you about the difference between Debenture and Shares. (i) Creditor ship Security v. Ownership Security: Whereas a debenture is a creditor ship security, a share is an ownership security. It means that a debenture-holder is a creditor of the company, while a shareholder is a part-owner of the company. It […]

External Reconstruction and Amalgamation

The upcoming discussion will update you about the difference between External Reconstruction and Amalgamation. From the point of view of an accountant, external reconstruction is similar to amalgamation in the nature of purchase; the books of the transferor company are closed and in the books of the transferee company, the purchase of the business is […]

Over-Capitalisation and Under-Capitalisation (Differences)

This article will help you to differentiate between Over-Capitalisation and Under-Capitalisation. 1. Over-capitalisation involves a great-strain on the financial resources of a company whereas under-capitalisation implies high rate of earnings on its shares. 2. The remedial procedure of over-capitalisation is more difficult and expensive as compared to the remedial procedure of under-capitalisation. 3. Under-capitalisation accelerates […]

Capitalisation, Capital Structure and Financial Structure

The terms, capitalization, capital structure and financial structure, do not mean the same. While capitalisation is a quantitative aspect of the financial planning of an enterprise, capital structure is concerned with the qualitative aspect. Capitalisation refers to the total amount of securities issued by a company while capital structure refers to the kinds of securities […]

Difference between Shares and Debentures | Finance Sources

This article will help you to differentiate between Shares and Debentures. Difference # Shares: 1. A share is a part of owned capital. 2. Shareholders are paid dividend on the shares held by them. 3. The rate of dividend depends upon the amount of divisible profits and policy of the Board of Directors. 4. Dividend […]

Financial Reporting and Financial Statements

The upcoming discussion will update you about the difference between financial reporting and financial statements. 1. Financial statements are a central feature of financial reporting. They are a principal means of communicating accounting information to those outside an enterprise. Although financial statements may also contain information from sources other than accounting records, accounting systems are […]

Difference between Traditional Costing and Target Costing

The upcoming discussion will update you about the difference between traditional costing and target costing. Traditionally, manufacturers would make use of the cost-plus approach to estimate the product price. A starting point for them would be to conduct market research to determine its market segment’s preferences and hence its product’s characteristics that will meet the […]

Financial Accounting and Management Accounting

The upcoming discussion will update you about the difference between financial accounting and management accounting. (i) Objects: The main object of financial accounting is to measure business income and communication of information to the various categories of persons, i.e., management, creditors, suppliers of goods, bankers, investors, etc. whereas the main objectives of management accounting is […]

Cost Accounting and Management Accounting

The upcoming discussion will update you about the difference between cost accounting and management accounting. Difference # Cost Accounting: 1. Deal with – Cost accounting deals with ascertainment, allocation, appointment and accounting aspect of costs. 2. Base – Cost accounting provides a base for management accounting. 3. Role – Cost accounting is helpful in collecting […]

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