Question

Briefly discuss the relationships among finace, accounting, and economics. In your response, define each term and then highlight if and how they are connected.

Answer 1

Economics refers to the all sort of activities which involves economic value or which can be measured in monetary terms like business, profession and commerce, trade are the main elements which comes under economics.

Accounting is the process of recording the business activities which are monetary in nature. In accounting, all the economic and monetary activities are recorded.

Finance refers to the branch which involves with the availability of funds to business. It involves the source and supply of capital to run a business.

All the three activities are connected to each other as no economic activity can not be completed without the finance and accounting is needed to keep the record of all economic and monetary activities.