Tag Archives | Concepts

Limitations of Economic Income

In this article we will discuss about the limitations of economic income. Economic income has several difficulties. In fact there is no agreement as to the meaning of "better offness" that occurs in specific time periods. Also, this term is not well defined in case of business enterprises. The greatest problem lies in measuring the net assets at the beginning [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Income Concepts|Comments Off on Limitations of Economic Income

Top 3 Concepts of Income (With Measurement)

The following points highlight the top three concepts of income. The concepts are: 1. Accounting Income 2. Economic Income 3. Capital Maintenance Income. Concept # 1. Accounting Income: Accounting income, often referred to as business income or conventional income is measured in accordance with generally accepted accounting principles. The profit and loss account or income statement determines the net income [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Income Concepts|Comments Off on Top 3 Concepts of Income (With Measurement)

Top 3 Concepts of Capital Maintenance in an Enterprise

The following points highlight the top three concepts of capital maintenance in an enterprise. The concepts are: 1. Financial Capital Maintenance 2. General Purchasing Power Financial Capital Maintenance 3. Physical or Operating Capital Maintenance. Concept # 1. Financial Capital Maintenance: Financial or money capital maintenance pertains to the original cash invested by the shareholders in the business enterprise. According to this concept [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Income Concepts|Comments Off on Top 3 Concepts of Capital Maintenance in an Enterprise
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