StudentShare solutions
Triangle menu

The economic and accounting concepts of Income - Essay Example

Nobody downloaded yet

Extract of sample
The economic and accounting concepts of Income

It is impossible to arrive at the accounting income without going through accounting equation. i.e. adding up what the accounting records say belongs to the business and deducting what they say the business owes. This gives us the accounting income which essentially shows what an individual or a business is worth according to those accounting records.
The accounting income therefore takes into account the fact that that no business will be set up to start trading in the absence of recourses which in most cases are supplied by the owner of the business.
Usually, it is not only then owner of the business supplying resources, but other people s well other than the owner. The amounts owing to these other people for their assets in the business is called liabilities
Accounting income , therefore can be called the owner 's equity or net worth, since it comprises of the funds invested in the business by the owner plus any profits retained for use in the business less any share of profit paid out of the business to the owner. The following is an illustration of a balance sheet.

Balance sheet as at
________________________________________________________________________
Fixed assets Capital
Free hold premises xx
Furniture and fittings xx Long Term, Liabilities xx
Motor Vans xx Loan for 5 Years xx
Current Assets
Trading Debtors xx
Trading stock xx
Cash at Bank xx
Short term Liabilities
Trading Debtors xx
Short term Loans xx
Institution of all kinds prepare income statements even governments of Government bodies ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The economic and accounting concepts of Income Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/307222-the-economic-and-accounting-concepts-of-income
(The Economic and Accounting Concepts of Income Essay)
https://studentshare.net/miscellaneous/307222-the-economic-and-accounting-concepts-of-income.
“The Economic and Accounting Concepts of Income Essay”, n.d. https://studentshare.net/miscellaneous/307222-the-economic-and-accounting-concepts-of-income.
  • Cited: 0 times

Summary

Accounting affects not only people in their personal lives but also very large businesses. It is also prudent to note that we all use accounting ideas when we plan what we are going to do with our money incomes.
Accounting income is therefore characterized with intensive planning process, where we have to explicitly know, how much of our incomes will go into savings and how much will be consumed, and it is against these backdrop that the concept of a budget emanates.
The economic and accounting concepts of Income
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The economic and accounting concepts of Income"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The various economic concepts linked with the public policies and income taxes
The research studies the issue of financing the public education through the local property taxes and the impact it has had on the valuation of properties in various districts. The impact of property taxes on the land valuation has been analyzed. This is followed by analysis of the incidence and burden of corporate income taxes in the short as well as long run.
9 pages (2250 words) Essay
Quality of income ratio
The ratio analysis explains the solvency, financial standing, liquidity, profitability and other facts about the firm’s financial position. This assignment will study and analyze the quality of income ratio and its usage for the company.
2 pages (500 words) Essay
Accounting Concepts
The ten key concepts of accounting include business entity, money measurement, going concern, dual aspect, periodicity concept, historical cost, matching, realisation, accrual, and objective evidence.
6 pages (1500 words) Essay
Finance and Accounting Concepts
Finance and Accounting Concepts Introduction Accounting concepts play an important role in recording the financial transactions and is a discipline that provides certain information related to financial transactions. Accounting provides important financial information to a wide range of potential users who are able to make several economic decisions for the allocation of economic resources.
8 pages (2000 words) Essay
Economic Concepts
Thus, what follows is a highlight of five economic concepts - opportunity cost, elasticity, comparative advantage, common resources, and public goods - integral to free trade as an (economic) activity not limited to nations but reaches far beyond to individual lives.
5 pages (1250 words) Essay
Explaining Basic Accounting Concepts and Business Structures
ersal in nature and must be applicable for businesses in the United States; otherwise each and every business enterprise would design their unique set of standards making it difficult for a governing bodies and readers of financial statements to monitor and evaluate adherence
2 pages (500 words) Essay
Economic Concepts
Regardless Michelle has the absolute advantage in both the chicken and potato production compared to James. f) Since Michelle can produce potatoes at a ratio of 4 pounds of potatoes per chicken versus James ratio of 2 pounds of potatoes per chicken, so to Michelle’s the
2 pages (500 words) Essay
Accounting: Quality of net income ratio
This assignment will study and analyze the quality of income ratio and its usage for the company. For any company earning is an essential part of its
2 pages (500 words) Essay
Accounting
Some contend that in the beginning many primitive societies, those that were in existent in the earliest days, developed the art of counting before
10 pages (2500 words) Essay
'What is income In the context of a review of the income theories of Fisher and Hicks critically evaluate the challenge to the use of Hicksian income theory in accounting policy by Bromwich, Macve and Sunder (2010).'
The objectives of these standards risks being distorted, misinterpreted, and misunderstood of the chosen theory elements, which would otherwise lead to increase the level of distortion. Bromwich et
8 pages (2000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic The economic and accounting concepts of Income for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us