Q1: Corporate Performance Measurement:Despite the sophistication that financial accounting has reachedthus far, accounting net income disclosed in corporate reporting isnot a scientifically proven figure.?
Required: Address the statement in light of what wediscussed in the lecture and the prescribed readings:
readings list you should read to answer Q1:
? Solomons, D. (1961). Economic and accounting conceptsof income. The Accounting Review, 36(3), 374-383.
? Kimball, H. G. (1935). The Importance of UnderstandingIncome and Profits. The Accounting Review, 131-135.
? Schmidt, F. (1931). Is appreciation profit?. TheAccounting Review, 289-293.
? Kelley, A. C. (1951). Can Corporate Incomes BeScientifically Ascertained?. The Accounting Review, 26(3),289-298.
? Brief, R. P., & Owen, J. (1970). The estimationproblem in financial accounting. Journal of Accounting Research,8(2), 167-177.
Q2: What do you think of an accountant who does not mindswearing by the All-Mighty that the income s/he discloses in theincome statement is true?
