Difference between Accounting System and
Financial System
Accounting system
|
Financial system
|
(i)
It is information generating system.
|
(i)
It is decision-making system.
|
(ii)
It is governed by certain laws and
|
(ii)
It is governed by external factors
|
Accounting
theory framework
|
relevant
to organization concerned.
|
(iii)
The role of accounting system is:
|
(iii)
The role of financial system is planning
|
(a)
Score-keeping
|
and
controlling financial decision viz:
|
(b)
Attention directing
|
(a)
Financing decision
|
(c)
Problem solving
|
(b)
Investment decision
|
(c)
Dividend decision.
|
|
(iv)
It takes input data from business
|
(iv)
It takes input data from information
|
transactions/event,
which are of
|
generated
by different branches of
|
financial
character.
|
accounting
incorporating relevant
|
industrial
and economic factors.
|
|
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