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Realization vs Recognition The words recognition and realization are used individually in many contexts but when they are used in combination it is definitely in context of accounting. Both these words can be used to define revenue, taxes, profit or loss of a company. A company that is running its business in a profitable way turns […]
Book Value vs Market Value Balance sheet of a company is like a medical report of a person and it clearly indicates the health of the company. A profitable balance sheet shows that the company is in good shape and the vice versa. There are several critical things mentioned in the balance sheet and book […]
Cash Flow vs Net Income Cash flow and net income are terms often heard in accounting. People often confuse between cash flow and income thinking it to be the same. But in reality, these are totally different concepts though related with availability of money. While cash flow refers to cash that comes in and goes […]
ROE vs ROA ROE and ROA are two indicators of the financial performance of a company. There are many indicators to help find a company’s financial health as well as its profitability. How profitable a company is, is always relative to its assets. The financial statement of a company is a picture of its financial […]
Implicit Cost vs Explicit Cost Implicit cost and explicit cost are terms used in accounting . As just about anything in accounting, there is always what we call as a relative cost to each transaction. However as these costs are measured, the most common types being mentioned are implicit and explicit cost. It is intriguing […]
Tangible vs Intangible Tangible and Intangible are terms very commonly used in accounting to refer to two types of assets. Difference between tangible and intangible is simple as tangible is something that has a physical existence and can be seen whereas intangible is something that cannot be seen. For example water is tangible while air […]
Depreciation vs Amortization Depreciation and Amortization are two terms that are commonly seen and used in accounting and finance but are often misunderstood. While both refer to the same process of estimation of an asset’s useful life, there is a difference between depreciation and amortization which this article intends to make clear. All items, whether […]
IFRS vs Canadian GAAP IFRS and Canadian GAAP are two accounting standards, the first is an international standard while the other is applicable to businesses in Canada only. To make accounting uniform so that the results of financial statements are more transparent and nearly similar in different parts of the world, International Accounting Standards Board (IASB) […]
CAPEX和OPEX |资本支出和Operational Expenditure CAPEX and OPEX are terms that are encountered quite often in business valuation. What is the true worth of a business and how does the value of a business change over time are measured in terms of Capital Expenditures (CAPEX) and Operating Expenditures (OPEX). It has been […]
IAS vs IFRS As IAS and IFRS are standards in the accounting practice that one adheres to in financial reporting, it is important to know the difference between IAS and IFRS. There was a need in the 1960’s to standardize accounting processes and reporting in order for practically anyone to understand the financial statements of […]
