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Does Principles of finance related to principle of accounting? Which one should be studied first?

Does Principles of finance related to principle of accounting? Which one should be studied first?

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Answer #1

Accounting is the language of business. It is language used by a company's managers to communicate a firms financial informations and decisions to the stakeholders. Using accounting we will prepare or quantify a firms data and using finance we will read and interpret those data.

Hence it can be said that accounting should be studied first( although not mandatory) for a clear picture of the functioning of a firm and finance later to interpret the financial performance and take decisions based on such informations. Hence based on principles of accounting many principles of finance have been developed.

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