.iso vs. .dmg

Hello all,

I recently figured out to handle image files using the disk utility application. The image file I was dealing with was a .dmg file, I don't know if all Mac files are like this, it was for Neo Office and from what I heard they use image files for large file sizes. My question is, are these image files similiar to .iso files that you would get off of a torrent site for lets say a software program or PC game? If so, does the disk utility use the same mounting process to make the file accessable to use?

Thanks,

Jaden