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ID number:345451
Published: 04.04.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used

Accounting income is often used as the basis for an indication of the result of operation of an entity, a criterion of dividend payments, the basis for taxation on income, a determining factor in wage fixing, a guide to management and so on.
Question 1
Economist generally defined income in terms of well-offness. The purpose of income calculation in practical affairs is to give people an indication of the amount that they can consume without impoverishing themselves (Hicks, 1946, p.172). However, the accounting rules that define the measurement of income are relatively ad…

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