Accounting And Economics; where does the difference lie?
Economics is mainly concerned with the limited resources and their allocation for different uses.
Economists study human behavior and helps in solving a problem of allocating limited resources which can be evaluated in terms of money.
Accountants record transactions which are monetary in nature like cost of goods purchased,prices of goods sold,value of assets purchased and sold etc.
A basic difference between an economist and an accountant is that economists is basically concerned with economic problems whereas an accountant is mainly concerned with individual human behavior which is restricted only to those specific aspects which can be expressed in terms of money.
An accountant can produce meaningful information only when he understands the basic concepts of economics whereas an economists can produce significant information only when he must understand the assumptions made by an accountant in producing information for his use.Economics and accounts concepts are dependent on each other.
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10 Comments. Leave new
Very well explained. People normally dont deal with economics and accounts at the same time. I liked the way the differences and the similarities have been explained.
Good article. Well described.!
Just what I was looking for as a student of Science as well as Commerce. 😀
Since accounting is quantitative in nature, it fails to deliver and communicate the impact of Economics which happens to be qualitative.
As a science student I never realised the difference.. Thank You.. Well done
Must read for people who think economics and commerce are the same thing
I differ from the view point. For knowing Account we don’t much Economics. Accountancy is used to used to keep track of money in firm whereas Economics has much large area of work in a firm or a country.
great knowledge…
THis is something new for me 😀
i didnt know much about the difference between those (PS science student )
I always thought there is a relationship bettern both but wrong they are very much different 😀
Nice piece of work 😀
Well done 😀
informative and well composed