Economic Versus Accounting Income: The Impact of Education on Students' Concepts

• Published in: The Journal of economic education Vol. 13; no. 2; pp. 40 - 46
• Main Authors: Kida, Thomas E., Hicks, Donald W.
• Format: Journal Article
• Language: English
• Published: Washington, D.C., etc Taylor & Francis 01-07-1982; Heldref Publications; Helen Dwight Reid Educational Foundation, etc; Taylor & Francis Inc
• Subjects: Accounting interpretations; Accounting methods; Accounting policies; Accounting systems; Cognitive Processes; Conventions; Economic costs; Economic value; Economics; Economics Education; Education; Feedback (Response); Financial accounting standards; Historical cost; Historical cost accounting; Income approach; Inventory; Motor Vehicles; Questionnaires; Replacement value; Resistance to Change; Students; Training; Well Being
• ISSN: 0022-0485; 2152-4068
• DOI: 10.1080/00220485.1982.10844993

A study of differences in approach to value and income concepts by students with and without formal accounting education is presented by Kida and Hicks. They found that students without accounting training tend to regard income as a change in value and well-being; those with accounting tend to view the income concept from an accounting procedural approach. The question is raised whether accounting majors might not benefit from additional training in economic theory beyond a basic principles course to broaden their approach to "theoretical value-based concepts."