The measurement of income occupies a central position in accounting. Income measurement is probably the most important objective and function of accounting, accounting concepts, principles and procedures used by a business enterprise. In general, income represents increase in wealth and success of business; the higher the income, the greater will be the success of a business. The theory of business income as developed by Edgar O. Edwards and Philip W. Bell is a classic treatise. It has attained a reputation as a major contribution to the accounting literature. In the book “The theory and measurement of business income” the authors made to classify the methodological approach in developing the theory of business income, knowledge of how a particular work fits within the array improves our understanding of the evaluation of accounting theory. They have suggested that the central objectives toward which accountants should point in formulating measures of a business income. The general theory of profit maximization by the individual firm provides a simplified picture of the decision-making process under conditions of uncertainty, the process which must be evaluated with the aid of accounting data. They have reconciled economic income and accounting income with considering price level adjustments. An attempt has been taken in this study to clarify these concepts of profit on the basis of historical cost and current costing.
| Published in | Journal of Finance and Accounting (Volume 2, Issue 3) |
| DOI | 10.11648/j.jfa.20140203.16 |
| Page(s) | 72-80 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
Profit, Historical Costing, Current Costing, Business Profit, Accounting Profit
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APA Style
Golam Mohiuddin. (2014). Edwards & Bell’s Concept of Profit: An Empirical Analysis on the Basis of Historical Cost and Current Costing. Journal of Finance and Accounting, 2(3), 72-80. https://doi.org/10.11648/j.jfa.20140203.16
ACS Style
Golam Mohiuddin. Edwards & Bell’s Concept of Profit: An Empirical Analysis on the Basis of Historical Cost and Current Costing. J. Finance Account. 2014, 2(3), 72-80. doi: 10.11648/j.jfa.20140203.16
AMA Style
Golam Mohiuddin. Edwards & Bell’s Concept of Profit: An Empirical Analysis on the Basis of Historical Cost and Current Costing. J Finance Account. 2014;2(3):72-80. doi: 10.11648/j.jfa.20140203.16
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Download@article{10.11648/j.jfa.20140203.16,
author = {Golam Mohiuddin},
title = {Edwards & Bell’s Concept of Profit: An Empirical Analysis on the Basis of Historical Cost and Current Costing},
journal = {Journal of Finance and Accounting},
volume = {2},
number = {3},
pages = {72-80},
doi = {10.11648/j.jfa.20140203.16},
url = {https://doi.org/10.11648/j.jfa.20140203.16},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20140203.16},
abstract = {The measurement of income occupies a central position in accounting. Income measurement is probably the most important objective and function of accounting, accounting concepts, principles and procedures used by a business enterprise. In general, income represents increase in wealth and success of business; the higher the income, the greater will be the success of a business. The theory of business income as developed by Edgar O. Edwards and Philip W. Bell is a classic treatise. It has attained a reputation as a major contribution to the accounting literature. In the book “The theory and measurement of business income” the authors made to classify the methodological approach in developing the theory of business income, knowledge of how a particular work fits within the array improves our understanding of the evaluation of accounting theory. They have suggested that the central objectives toward which accountants should point in formulating measures of a business income. The general theory of profit maximization by the individual firm provides a simplified picture of the decision-making process under conditions of uncertainty, the process which must be evaluated with the aid of accounting data. They have reconciled economic income and accounting income with considering price level adjustments. An attempt has been taken in this study to clarify these concepts of profit on the basis of historical cost and current costing.},
year = {2014}
}
TY - JOUR T1 - Edwards & Bell’s Concept of Profit: An Empirical Analysis on the Basis of Historical Cost and Current Costing AU - Golam Mohiuddin Y1 - 2014/06/10 PY - 2014 N1 - https://doi.org/10.11648/j.jfa.20140203.16 DO - 10.11648/j.jfa.20140203.16 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 72 EP - 80 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20140203.16 AB - The measurement of income occupies a central position in accounting. Income measurement is probably the most important objective and function of accounting, accounting concepts, principles and procedures used by a business enterprise. In general, income represents increase in wealth and success of business; the higher the income, the greater will be the success of a business. The theory of business income as developed by Edgar O. Edwards and Philip W. Bell is a classic treatise. It has attained a reputation as a major contribution to the accounting literature. In the book “The theory and measurement of business income” the authors made to classify the methodological approach in developing the theory of business income, knowledge of how a particular work fits within the array improves our understanding of the evaluation of accounting theory. They have suggested that the central objectives toward which accountants should point in formulating measures of a business income. The general theory of profit maximization by the individual firm provides a simplified picture of the decision-making process under conditions of uncertainty, the process which must be evaluated with the aid of accounting data. They have reconciled economic income and accounting income with considering price level adjustments. An attempt has been taken in this study to clarify these concepts of profit on the basis of historical cost and current costing. VL - 2 IS - 3 ER -
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