what is the difference between principal and principle in finance?
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Principal is a noun and adjective with specialized meanings in finance and law but most commonly used to refer to someone in a position of authority or high prominence. Principle is only a noun and refers to a natural, moral, legal rule or standard. ... PrinciPLEs are rules or standards and they cannot be your pal.
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In personal finance, a finance charge may be considered simply the dollar amount paid to borrow money, while interest is a percentage amount paid such as annual percentage rate (APR). These definitions are narrower than the typical dictionary definitions or accounting definitions.
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Principles of accounting can also refer to the basic or fundamental principles of accounting: cost principle, matching principle, full disclosure principle, revenue recognition principle, going concern assumption, economic entity assumption, and so on.
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They are the same thing: the head of a school. ... In the U.S., a "principal" tends to be the chief administrator of a public (that is, state-supported) school, while a "headmaster" or "headmistress" has the same function at a private school. There are exceptions to this, though.
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The roles of dean and principal are similar, with a major difference being that a principal is typically the head of a K-12 educational institution, while a dean is a college-level administrator. ... High school principals typically focus more on curriculum and on the management of teachers and other staff.
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Interest is the charge against the money lent to the borrower. A dividend is the percentage of profit distributed. ... Interest is paid to the lenders/creditors/debenture holders. A dividend is paid to the preferred shareholders and equity shareholders.
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The principal is the amount of money that is lent and is determined by the value of the vehicle. For instance, if you are using an auto loan to purchase a used truck that costs $10,000, then the principal amount for your loan would also be $10,000.
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As nouns the difference between finance and financing is that finance is the management of money and other assets while financing is (finance|business) a transaction that provides funds for a business.
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Although both things determine the way you act and take decisions, rules are imposed from the outside and must be obeyed to avoid incurring some kind of penalty (a punishment, a fine, a layoff, a season in jail, etc.) whereas principles are internal, and force you to do what you think it is right or correct.
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While both types of interest will grow your money over time, there is a big difference between the two. Specifically, simple interest is only paid on principal, while compound interest is paid on the principal plus all of the interest that has previously been earned.
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Let's start by laying out the distinctions between the two roles. VPs of Finance often have a hands-on role in managing a company's finances. ... CFOs, on the other hand, are more involved in the strategic financial future of a firm. The role is less about accounting and more about how to reach longer term goals.
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Principals are the top-level executives of a company, while partners own part of the company. Someone could be both at the same time; in fact, principals are often also partners. In some cases the principal is the owner or founder of a firm.
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Key Takeaways. Principal trading is when a brokerage completes a customer's trade using their own inventory. Agency trading involves a brokerage finding a counterparty to the customer's trade, which can include customers at other brokerages.
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The principal balance is the remaining principal due on the loan. This gets reported in monthly statements from the lender and is available if you call your lender or check online. ... However, a payoff is the amount owed on the loan to pay it off on a specific day.
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The difference between Headmaster and Principal. When used as nouns, headmaster means a male school principal, whereas principal means the money originally invested or loaned, on which basis interest and returns are calculated. Principal is also adjective with the meaning: primary. ... A male school principal.
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As nouns the difference between fundamental and essential is that fundamental is a leading or primary principle, rule, law, or article, which serves as the groundwork of a system; essential part, as, the fundamentals of linear algebra while essential is a necessary ingredient.
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Private Finance is all about the management of finances at an individual level. On the other hand, public finance is a field of finance in which one studies the role of government and the impact of the various activities undertaken by the government, in an economy.