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Week 1 Homework Assignment

In: Business and Management

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BUSN 5200

Homework Assignment for Week 1:

1. Describe the field of finance. How is it different from the field of accounting?

Finance is a multifaceted field that relates to many aspects of life and business and it is beneficial to understand its impact. Knowing how finance works in different areas is crucial in budgeting investing and making your assets go far. In the text, Finance consists of three areas; corporate finance, investments and financial institutions. Corporate finance ( synonymous with business finance). Investments, which consist of financial assets like stocks, bonds; in this field you deal a lot with stock brokers as well as security or financial analysts. Financial institutions which are most commonly banks, insurance agencies, etc. and deal with financial transactions. There is a fourth element which the former three categories fall under which is international finance; however, is overseas and expands the definition of finance.

Accounting vs Finance. Accountants should possess at least a general knowledge and more depending on their occupation because Finance and Accounting should go hand in hand, meaning one cannot exist without the other. In areas of corporate finance it is required to have accounting experience or education because many accounting principles use finance in its business decisions and duties. Additionally, as finance grows and changes it affects accounting practices, i.e. financial statements. Furthermore, cost accounting and finance are even more intertwined in that they share many of the same concerns and subjects. Financial analysts will make use of accounting info which helps them recognize types of information that is valuable and useful in everyday practice.

Moreover, Accounting id the methodical process of recording, reporting and assessing financial deals and transactions. It involves the preparation

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