Finance vs. Accounting

Accounting is the past - it tells us what has happened. finance is the future - it tells us about the worth of any investment.

Finance is more concerned with the money or cash that you'll get from the investment once you have taken out cash to buy it. A good investment is one whose future cash discounted to today is more than what you've paid to buy it. The question then becomes is it 20% more or 30% more etc. The important question then becomes how much am I getting back compared to how much I paid for it - the so called return on investment (ROI).