The Concept of Profit in Economics and Accounting

Abstract

The purpose of this thesis is to point out the difference in the usage of the word 'profit' in Economics and accounting. An effort has been made to establish the relationship between 'economic profit' and accounting profit', and take up some of the issues related to profit. It is however, admitted that the concept of profit in two different fields cannot be dealt with fully in a thesis of this volume. A secondary purpose of the thesis is to outline an alternative measure of profit to that currently offered in financial receipts. In attempting this secondary task, reference has been made to the economic concepts of income and value. The economist doe snot like the accountant consider income and profit to be anonymous. I call the task a secondary one because numerous authors, more able and far seeing than myself have already formulated the idea expressed in chapter 5 of the thesis.....