2. The role of Financial Accounting is to provide financial information to people outside the organization. Managerial accounting, on the other hand, furnishes financial information relevant for the executives and administrators within the organization. The two mentioned disciplines are focused mainly on compiling and reporting the financial information, while Finance is concerned on managing money and other monetary instruments. Accounting lays down the historical account of financial transactions while finance is more concerned on improving the future financial transactions of a firm.
3. A balance sheet provides a picture of a firm's financial position at a given time. It elaborates the financial position of the firm as being shown by its properties (assets) and what it owes (liabilities and net worth) in a given moment. It actually shows the potentials and the weaknesses that a business has and can also identify business trends particularly on its receivables and payables (Balance Sheets 2003).
Each of the accounting convention has different views in accounting for the entries made in the balance sheet.