Which of these provides the best description of the difference between accounting and finance?
a. Accounting and finance are interchangeable terms which have the same meaning and application.
b. Accounting records past activities of a firm while finance helps with decisions regarding the firm's future.
c. Finance is the recording of accounting transactions that have occurred or are expected to occur.
d. Accounting is centered on current and future activities while finance focuses on the analysis of past transaction.
Answer: b. Accounting records past activities of a firm while finance helps with decisions regarding the firm's future.
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