Which is Better Accounting or Economics

Prof. Vinod Kumar
One debate always goes on, "which is better accounting or economics?" Which field should students choose? A student can become accountant or chartered accountant after getting the degree of accounting or CA or CPA. A student can become economist after post graduation in economics. But students  may ask above question as , " How can they compare  Accounting and Economics Degree?

My answer on this debate is that both are important. Every company should have both accounting and economics (finance) department.

With accounting, we can know the amount of profit and amount of our assets and liabilities. Other side, with economics, we can know to use of our fund. How to use our fund or money? It tells use the way of use of fund. But how? Fund should be used with effective ways. So that our wants should satisfy. Suppose we have one want ( for the consumption of food), second want (for wearing clothes), third want ( for living in own home) and like this, we may have 1,00,000 wants. We have to satisfy all these wants with our limited money. Accounting shows use the amount of profit or loss,amount of our assets and our liabilities. There is big relationship between accounting and economics. I starts from accounting.

Suppose, your accounting statement shows your net profit $ 100000 and you have invested $ 10,00,000. Your accounting is showing that your return on investment is just 10%. Why is this 10%? Because you had used the money of investment in any project and only economics tells you in which project, you have to use your fund. If you know economics and learned the effective use of fund. At that time, you can achieved your profit $200,000 on the same investment of $10,00,000.That will be the 20% return on your same investment. So, it is very necessary to understand the rules and regulations of economics.

Every country can classify on the basis of its economy. It has its own GDP. After seeing the GDP of any country, we can estimate the progress of that country. So, we should have to learn the rules of economics. On the other side, if we do not find, how much have we obtained profit. Is it $ 1,00,000 or $ 2,00,000? How can we use this profit for increasing next year profit. It means without accounting, economics is also useless. So, accounting is also very necessary for every company. If we do not maintain accounts, we can not find the amount of our investment and our profit. We can show total investment of $ 10,00,000, if we have maintain our accounts which is showing that our total investment is $ 10,00,000 which we have invested in different projects. Only after this, we can take different decisions on the basis of economics rules.

Modern economics has now converted in finance. Now, I think, you need not to do comparison between accounting and economics for knowing which is better. You should have to study both accounting and economics.

If you want to get one degree out of accounting and economics. Your choice should not be based on the comparison but it is based on your interest. If you are interested to maintain the records of company, you can choose accounting degree and if you want to take your innovative decisions for using company's limited resources you can choose either economics or finance degree.

Related : Which is Better MBA Finance or MBA Marketing?


Comments on this Website
Share above Content to Your Friends


access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Which is Better Accounting or Economics
Which is Better Accounting or Economics
Accounting Education
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock