Economic Concept of Income - Management Duniya

Economic Concept of Income

The Economic Concept of Income:

In the opinion of some authors as a money measurement postulate is gradually losing its validity. The money income concept is also getting absolute. Mac. Neal revolted against this concept has early as 1939 & advocated the “economic value concept in his book “Truth in Accounting”.

Hicks said “the purpose of income calculation in practical affairs is to give people an indication of the amount they can consume themselves following from this idea it would seem that we ought to define a man’s income as maximum value which he can consume during a week & still expect to be as well off at the end of the week, as he was at the beginning”.

Source: A/C Books & Notes

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By: Management Duniya