Accounting utilizes certain principles to support its actions, while economics makes use of assumptions that will tend

to make certain situations simpler. Accounting prepares, analyzes and understands financial statements, whereas economic studies the production, consumption, and even the distribution, of certain goods and services. Conversely, economics is a study, or a science, that deals with the issue of scarcity. The basic premise of this discipline, is that people and everybody concerned must employ certain means to counter the very limited resources available. It centers its study on the production, distribution and consumption of goods and services. The concept of economics also tries to understand how certain economies operate, and how economic variables interact with each other. In addition, the two major subdivisions of this discipline are microeconomics and macroeconomics.

Accounting is the art of the preparation and presentation of relevant and reliable financial information to those who can use it for business decisions. Economics is a social / behavioral science that deals with the scarcity of resources, and society's means of distributing those resources. While certain concepts exist in both, such as profit, cost and depreciation; the concepts have substantially different meanings and interpretations. Capitalism is an economic system based on the private ownership of the means of production, with the goal of making a profit.[1][2][3] Critics of capitalism associate it with economic instability[4] and its inability to account for the wellbeing of all people.[5] Elements central to capitalism include capital accumulation, competitive markets, and a price system.[6] There are multiple variants of capitalism, including laissez-faire, welfare capitalism, and state capitalism. Capitalism is considered to have been applied in a variety of historical cases, varying in time, geography, politics, and culture.[7] There is general agreement that capitalism became dominant in the Western world following the demise of feudalism.[8] Scarcity is the fundamental challenge confronting all individuals and nations. We all face limitations... so we all have to make choices. We can't always get what we want. How we deal with these limitations that is, how we prioritize and allocate our limited income, time, and resourcesis the basic economic challenge that has confronted individuals and nations throughout history. A traditional economic system ishere's a shockershaped by tradition. The work that people do, the goods and services they provide, how they use and exchange resources all tend to follow longestablished patterns. These economic systems are not very dynamicthings dont change very much. Standards of living are static; individuals dont enjoy much financial or occupational mobility. But economic behaviors and relationships are predictable. You know what you are supposed to do, who you trade with, and what to expect from others. Socialism is a type of command economic system. Historically, the government has assumed varying degrees of control over the economy in socialist countries. In some, only major industries have been subjected to government management; in others, the government has exercised far more extensive control over the economy. A mixed economic system combines elements of the market and command economy. Many economic decisions are made in the market by individuals. But the government also plays a role in the allocation and distribution of resources.

Socialism is an economic system characterised by social ownership of the means of production and cooperative management of the economy.[1] "Social ownership" may refer to cooperative enterprises, common ownership, state ownership, or citizen ownership of equity.[2] There are many varieties of socialism and there is no single definition encapsulating all of them.[3] They differ in the type of social ownership they advocate, the degree to which they rely on markets or planning, how management is to be organised within productive institutions, and the role of the state in constructing socialism.[4]