Question

What is the relationship among economic, finance, and accounting?

Answer 1

There will be a relationship between economics and accounting and finance because economics will incorporate factors like interest rate and taxations along with change in monetary policy, which will have to be incorporated by both the financial managers as well as accounting personnel, in order to sustain and survive by accommodating the changes into the business to maximize the profit in the long run.

There is a relationship between finance and accounting as well as accounting is focusing on various kinds of reporting of income of the company which is also the major goal of financial manager that is value maximization in the long run and accounting is also aimed at recording of transaction on the accrual basis even the financial manager is looking for the cash flows of the company, he is also looking for the receipts overall, there is a relationship between accounting as well as finance and economics so that Tmanager can have complete knowledge of these things in order to make decisions and help company make profits in the long run.