Accounting and economic income both define income as the sum of cash flows and changes in net assets. The format typically found in actual statement may not be the most useful for analytical purposes. It is important for the analyst to be cognizant of the various categories or groupings into which the income statement components can be combined. In this lecture briefly present on Accounting Income and Assets in Accrual Concept. The accrual concept in accounting means that expenses and revenues are recorded in the period they occur, whether or not cash is involved.
Accounting Income and Assets: Accrual Concept
