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A synopsis on finance?

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Wiki User
06/03/2009

Finance is all about looking forward in time. Accounting is about looking backward or at the present.

Finance is essentially the art of forecasting what will be the unit(s) of return for a given unit of financial risk.

It can also be understood as arranging money for capital investment and later a means of evaluating that investments results.

On a more basic level finance is about budgeting financial resources over time for optimal use of capital or to reach or maintain a particular goal.