Tuesday, February 18, 2014

Difference between Accounting System and Financial System

 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.