Is there really that much of a difference between Economics and Accounting?
Answer:
My niece has a Master's degree in business administration and is a Certified Public Accountant. She says Accounting pertains to keeping records for specific, individual companies. Economics deals with the financial patterns in general ---not a specific company. Another difference is that accounting is only a backward-looking profession, after money has been spent or new accounts acquired. Economics studies both past and future trends.
This difference in Accounting and Economics is about the same as the difference in the Earth and the Moon.
the main difference is economics is the bigger picture and accounting is usually relating to one entity.
Also economics is forward looking and accounting tends to be more backwards looking - with some forward looking, but based on history usually.
Accounting is the physical ledger of what was brought in and spent, and economics is the science of understanding what causes changes to the economy.
Economics relates to the social sciences, economics or oeconomics is the study of human choice behaviour and how it effects the production, distribution, and consumption of scarce resources.
Accounting is the practical source of applying data in order to functionally track funds and comply with all laws that apply.
Kind of like the difference between playing sports and keeping score.
Economics is playing the game. Accounting is keeping score. They are very complex games, and scorekeeping is complicated. People can spend their entire lives learning more and more about each. But the analogy is pretty darned good.
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