By learning the chartered accountancy course the student understands financial statements and tax calculations. Finance is changing as per the evolving trends. Knowledge is not power. The application of knowledge is power. In the modern world, inflation is high. We get data for all the transactions. The point is to use the data in a format. The format that fits the financial calculations is called the financial statement. The changes made to the finance with laws are amendments. These amendments require theoretical knowledge and general knowledge. People with skills of general awareness and reading comprehension develop their general knowledge. The blog walks us through the skills of a chartered accountant.
What is the difference between general awareness and knowledge?
General knowledge comes by learning facts without detailed research. The knowledge that comes from reading something with proof enhances the subject knowledge. The knowledge that comes from reading information without proof is general knowledge. Learning has two phases. The first phase is learning facts. The second one is learning the information with research activity. The subjects that increase general knowledge are art, fashion, cooking, film, music, finance, games, science, biology, history, geography, literature, politics, medicine, sports and television. The subjects that increase the subject knowledge are physics, chemistry, biology, zoology, commerce, computer science, social science, and political science.
The topics in general awareness are international affairs, bilateral affairs, national affairs, politics, History of India, world geography, environmental ecology, trending news, sports, places in trending news, banking sector news, and news about the stock market. ICAI conduct quiz contest on general awareness. This event happened in 2022 also. The eligibility to participate in this event is intermediate passed or final level registered students. The students who have completed the article ship training are not eligible for this quiz contest. In competitive exams, students are tested for general knowledge and quantitate analysis. General knowledge is the sum of knowledge that comes from different fields. General awareness is the sum of knowledge happening in the living country and around the globe.
What is the difference between financial and general awareness?
Financial knowledge comes from information about the stock market, insurance, and banking industry. Accumulating knowledge from domestic and international financial policies and developments helps design the best financial product. Financial literacy also helps in investing and planning personal finance with rational decisions. General awareness increases social awareness. Financial literacy increases the understanding of the financial challenges prevailing in the country.
The differences between general and financial awareness are listed below:
• In banking exams, financial awareness is an important section.
• In competitive exams, general awareness is an important section.
• General awareness consists of current affairs. The subjects read under the general awareness syllabus are ancient history, modern Indian history, medieval history, world history, Indian polity, Geography, Economics, physics, biology, chemistry, and general science.
• Financial awareness is about income, budget, taxation, savings, expenditure, investment avenues, risk management, insurance, and borrowing.
• General awareness comes from the social circle. Reading the newspaper is the best way to increase the quantum of general knowledge.
• Financial awareness comes from financial plans. Families with the literacy of finance set financial goals, create a budget and increase passive and active income.
• General awareness is easy to score with regular practice. It does not require logical calculations.
• Financial awareness is easy to score with regular practice. It consists of logical calculations.
Role of a chartered accountant in nation-building:
Chartered accountants take care of taxation, financial planning, GST implementation, budget forecast, capital budget and capital restructuring. Chartered accountants participate in nation-building through their profession. The following points elucidate the role of chartered accountants towards the nation:
• Chartered accountants work for accounts, taxation, capital formation, social accounting and economic development.
• Chartered accountants play a vital role in drafting rules and implementing laws.
• In the current scenario, chartered accountants help with the implementation of GST.
• Tax planning is beneficial to business owners and the common man.
• Chartered accountants help in globalization. They understand the foreign exchange management act. They help Indian companies to operate in foreign countries. This increase the tax revenue to the Indian government.
• Chartered accountants regulate the foreign currency inflow and outflow.
• Chartered accountants help investors and business owners. They explain the operations of SEBI and SCRA act to the investors.
• A chartered accountant is an important committee member in deciding the law. They have vast knowledge and draft the legislation.
• ICAI advise the Indian government in tax matters. They make the tax system stronger.
• Chartered accountants conduct different types of audits prescribed by the government. They take care of forensic audits, CAG audit, tax audit, and income tax audit.
• Chartered accountants calculate and collect the tax revenues of the country. GST and income tax is the first source of Income for the Indian government.
Role of a chartered accountant in business development:
The following points elucidate the role of a chartered accountant in a business environment.
• Chartered accountants help small and large businesses.
• Chartered accountants manage the cash flow and business needs.
• Chartered accountants help business owners to understand the competition and strategic analysis.
• Chartered accountants help business owners to express their business idea to investors.
• Chartered accountants enhance their reputation and connect the business to a network of people. The business network has potential goals and ideas.
• Chartered accountants understand capital needs and project financing.
• Chartered accountants frame the internal and external policies. These policies ensure the internal and external growth of the business.
• Financial reports explain the financial health of the company. These reports are prepared on a weekly, monthly, quarterly and annual basis.
Conclusion:
Chartered accountants have intense knowledge. This knowledge is the aggregate of general, financial and logical thinking. Chartered accountants contribute to business and national development. Creating the best professionals for the smooth functioning of the business is the motto of RR Academy. The service of a chartered accountant in the nation is incomparable.
