Origins of National Income Accounting

In: Business and Management

Submitted By maferkitty84
Words 1145
Pages 5
Pregunta 1: ¿Por qué es importante la contabilidad nacional? Es decir, contar con datos sobre el ingreso nacional: sus fuentes y destino.
Porque tener un conocimiento detallado del origen, distribución y destino de los ingresos, permite tener un mayor control sobre las variables que afectan a la economía de un país, de tal manera que no sólo puedan ser útiles para regular la estabilidad industrial, sino que permitan incluso generar las bases de estudio para hacer cambios en las reformas de impuestos y desarrollar un plan económico nacional.
La recolección de estos datos, así como su estudio y análisis son base de sistemas económicos en las cuales incluso se basan diferentes tipos de sistemas políticos. De tal manera que el ingreso nacional sea un dato importante, sin embargo existen otros indicadores de mucha relevancia como el precio de productos básicos, medicinas, y otros productos, sobre todo aquellos de los cuáles no se pueda obtener información a través de las importaciones y exportaciones.
Otros indicadores importantes a nivel laboral además del nivel del desempleo, los encontramos en las estadísticas de las nóminas, ya que de la cantidad de estos ingresos se generan gastos por algunos productos, mismo que deben ser medidos de acuerdo las preferencias de los consumidores.
Otro aspecto notable a resaltar es que la creación de este tipo de sistemas de control de las variables macroeconómicas no ha sido en la historia un resultado de la libre actividad de las fuerzas del mercado, sino producto de la intervención estatal propia de la economía mixta, siguiendo el ejemplo en este tema de las ahora casi extintas economías planificadas.
La lectura del caso “The Origins of National Income Accounting” explica como en la época de la "Gran Depresión" de la economía mundial, al tratar de entender el estado de la economía de los Estados Unidos, los funcionarios…...

Similar Documents

Income Taxes and Financial Accounting

...Income taxes and financial accounting Abstract: The paper discusses the basic elements of tax allocation, analyzes extensively the principal timing difference: accelerated depreciation for tax purposes and straight-line depreciation for published financial reporting, looks into the major aspects of SFAS No. 109, and explores the difference of GAAP and IFRS on tax allocation. 1. Income tax allocation In order to comply with IRS tax code and make sense of the tax expands for income statement analysis, income tax allocation involves with high level of complexity for financial statement. This paper tries to explain how income tax allocation works by comparing of accelerated tax depreciation versus straight-line for financial reporting. The paper will focus on the change from SFAS No. 109 from SFAS No. 96. The discounting of deferred tax liabilities is also mentioned and analyzed. Because of the timing difference between time of the tax return and the time of the publication of the financial statement, different taxable results incur from the IRS tax basis and the financial reporting basis. Although the different exist, the difference will be smooth out in the cumulated ways for years and years. Income tax expense and income tax liability are always differ from each other in figures, but with the difference deferred in next year. 1.1 History In 1967, APB Opinion No.11 replaced ARBs 43 and 44 under the requirement of comprehensive allocation. If there is any......

Words: 3592 - Pages: 15

Contribuate of It Sector in National Income

...Presently banking is a very dynamic sector in our country. It’s impact in our country economy is quite vast. Banking business is little bit different from other business. It mainly deals with organizations with money and credit activity. Bank is a profit oriented organization. A bank invests its funds in many ways to earn more and more profit and most of its income is derived from loans and advances. Bank makes loan and advances to traders, businessmen, industrialists and many other persons against security of some cautious policy and sound lending principle in the matter of lending. One of the primary functions of commercial banks is sanctioning of credit to the potential borrowers. Bank’s credit is an important catalyst for bringing about economic development in country. Without adequate finance there can be no growth or maintenance of a stable economy. Bank lending is important for the economy, for it makes possible the financing or agriculture, commercial and industrial activities of a nation. At the same time, a bank will, therefore, distribute its funds among various sectors in manner as to derive sufficient incomes.   Dutch-Bangla Bank Ltd. is one of the largest commercial bank in the country, has some prejudice to finance directly on priority basis to agriculture, industry and commerce sector for strengthening the economic base of the country. A large amount of the total economic activities of the country transacts along with DBBLitself. Hence it is very clear......

Words: 22608 - Pages: 91

National Income and Macroeconomics

...UNIT I NATIONAL INCOME AND MACROECONOMICS 1 National Income National Income is defined as the sum total of all the goods and services produced in a country, in a particular period of time. Normally this period consists of one year duration, as a year is neither too short nor long a period. National product is usually used synonymous with National income. Alfred Marshall in his ‘Principle of Economics’ (1949) defines National income as “The labour and capital of a country, acting on its natural resources, produce annually a certain net aggregate of commodities, material and immaterial, including services of all kinds…..and net income due on account of foreign investments must be added in. This is the true net National income or Revenue of the country or the national dividend.” Irving Fisher defined national income as “The national dividend or income consists solely of services as received by the ultimate consumers, whether from their material or from human environments. Thus, a piano or an overcoat made for me this year is not a part of this year’s income, but an addition to capital. Only the services rendered to me during this year by these things are income.” Central Statistical Organization defines National income as “National Income is the sum of factor income earned by the normal residents of a country in the form of wages, rent, interest and profit in an accounting year.” Concepts of National Income There are different concepts of National Income, namely;......

Words: 2044 - Pages: 9

National Income of India

...The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation has released the advance estimates of national income at constant (2004-05) and current prices, for the financial year 2011-12. 2. These advance estimates are based on anticipated level of agricultural and industrial production, analysis of budget estimates of government expenditure and performance of key sectors like, railways, transport other than railways, communication, banking and insurance, available so far. The advance estimates at current prices are derived by estimating the implicit price deflators (IPDs) at sectoral level from the relevant price indices. The salient features of these estimates are detailed below: I ADVANCE ESTIMATES OF NATIONAL INCOME, 2011-12 Estimates at Constant (2004-05) Prices Gross Domestic Product 3. Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2011- 12 is likely to attain a level of Rs. 52,22,027 crore, as against the Quick Estimates of GDP for the year 2010-11 of Rs. 48,85,954 crore, released on 31 st January 2012. The growth in GDP during 2011-12 is estimated at 6.9 per cent as compared to the growth rate of 8.4 per cent in 2010-11. 4 . The growth rate of 6.9 per cent in GDP during 2011-12 has been due to the growth rates of over 8 per cent in the sectors of ‘electricity, gas and water supply’, 'trade, hotels, transport and communication', and 'financing,......

Words: 3086 - Pages: 13

Trends of National Income

...1950 to mid-1970s: Income poverty reduction shows no discernible trend. In 1951, 47% of India's rural population was below the poverty line. The proportion went up to 64% in 1954-55; it came down to 45% in 1960-61 but in 1977-78, it went up again to 51%. Mid-1970s to 1990: Income poverty declined significantly between the mid-1970s and the end of the 1980s. The decline was more pronounced between 1977-78 and 1986-87, with rural income poverty declining from 51% to 39%. It went down further to 34% by 1989-90. Urban income poverty went down from 41% in 1977-78 to 34% in 1986-87, and further to 33% in 1989-90. After 1991: This post-economic reform period evidenced both setbacks and progress. Rural income poverty increased from 34% in 1989-90 to 43% in 1992 and then fell to 37% in 1993-94. Urban income poverty went up from 33.4% in 1989-90 to 33.7% in 1992 and declined to 32% in 1993-94 Also, NSS data for 1994-95 to 1998 show little or no poverty reduction, so that the evidence till 1999-2000 was that poverty, particularly rural poverty, had increased post-reform. However, the official estimate of poverty for 1999-2000 was 26.1%, a dramatic decline that led to much debate and analysis. This was because for this year the NSS had adopted a new survey methodology that led to both higher estimated mean consumption and also an estimated distribution that was more equal than in past NSS surveys. The latest NSS survey for 2004-05 is fully comparable to the surveys before 1999-2000 and...

Words: 399 - Pages: 2

Case Study on National Income

...average income high in some countries while it is low in others? * Why do prices rise rapidly in some periods of time while they are more stable in other Periods? * Why do production and employment expand in some years and contract In others? * What, if anything, can the government do to promote rapid growth in Incomes, low inflation, and stable employment? * These questions are all macroeconomic in nature because they concern the workings of the entire economy. * Because the condition of the overall economy profoundly affects all of us, changes in economic conditions are widely reported by the media. Indeed, it is hard to pick up a newspaper without seeing some newly reported statistic about the economy. The statistic might measure the total income of everyone in the economy (GDP), the rate at which average prices are rising (inflation), the percentage of the labor force that is out of work (unemployment), total spending at stores (retailsales), or the imbalance of trade between the united states and the rest of the world (the trade deficit). All these statistics are macroeconomic. Rather than telling us about a particular household or firm, they tell us something about the entire economy. Meaning and Concepts of National Income (NI) * Consumption is the final aim of the all economic activity .But it must be preceded by production distribution and exchange .National income is the final outcome of all economic activities of a nation. The......

Words: 6867 - Pages: 28

National Income & Macroeconomics

...UNIT I NATIONAL INCOME AND MACROECONOMICS 1 National Income National Income is defined as the sum total of all the goods and services produced in a country, in a particular period of time. Normally this period consists of one year duration, as a year is neither too short nor long a period. National product is usually used synonymous with National income. Alfred Marshall in his ‘Principle of Economics’ (1949) defines National income as “The labour and capital of a country, acting on its natural resources, produce annually a certain net aggregate of commodities, material and immaterial, including services of all kinds…..and net income due on account of foreign investments must be added in. This is the true net National income or Revenue of the country or the national dividend.” Irving Fisher defined national income as “The national dividend or income consists solely of services as received by the ultimate consumers, whether from their material or from human environments. Thus, a piano or an overcoat made for me this year is not a part of this year’s income, but an addition to capital. Only the services rendered to me during this year by these things are income.” Central Statistical Organization defines National income as “National Income is the sum of factor income earned by the normal residents of a country in the form of wages, rent, interest and profit in an accounting year.” Concepts of National Income There are different concepts of National Income, namely;......

Words: 2044 - Pages: 9

National Income Trens

...1950 to mid-1970s: Income poverty reduction shows no discernible trend. In 1951, 47% of India's rural population was below the poverty line. The proportion went up to 64% in 1954-55; it came down to 45% in 1960-61 but in 1977-78, it went up again to 51%. Mid-1970s to 1990: Income poverty declined significantly between the mid-1970s and the end of the 1980s. The decline was more pronounced between 1977-78 and 1986-87, with rural income poverty declining from 51% to 39%. It went down further to 34% by 1989-90. Urban income poverty went down from 41% in 1977-78 to 34% in 1986-87, and further to 33% in 1989-90. After 1991: This post-economic reform period evidenced both setbacks and progress. Rural income poverty increased from 34% in 1989-90 to 43% in 1992 and then fell to 37% in 1993-94. Urban income poverty went up from 33.4% in 1989-90 to 33.7% in 1992 and declined to 32% in 1993-94 Also, NSS data for 1994-95 to 1998 show little or no poverty reduction, so that the evidence till 1999-2000 was that poverty, particularly rural poverty, had increased post-reform. However, the official estimate of poverty for 1999-2000 was 26.1%, a dramatic decline that led to much debate and analysis. This was because for this year the NSS had adopted a new survey methodology that led to both higher estimated mean consumption and also an estimated distribution that was more equal than in past NSS surveys. The latest NSS survey for 2004-05 is fully comparable to the surveys before 1999-2000......

Words: 399 - Pages: 2

Accounting for Corporate Income Tax

...through shareholders' equity, with the balance, $6.4 billion, provided by debt in various forms. A sizeable portion of the debt is unearned revenue and deposits ($0.8 billion, or 9% of total assets) and long-term debt is 35% of total assets. Interest expense is reported at $237 million, eating up a significant portion of the reported $956 million in operating earnings. Appropriate measurement of these amounts is critical. This chapter reviews common liabilities, including both financial and non-financial liabilities. Technical measurement issues are reviewed in the context of bond liabilities. Chapter 13 will discuss accounting for share equity. Then, in Chapter 14, coverage returns to debt arrangements, those that have some attributes of debt and some attributes of equity. Innovative financial markets have introduced significant complexities into the accounting world! 683 | P a g e LIABILITY DEFINITION According to the conceptual framework, a liability is defined as a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of economic benefits. Settlement could be through future transfer or use of assets, provision of services, or other yielding of economic benefits. These characteristics can be simplified for practical purposes by remembering that a liability:    Is an expected future sacrifice of assets or services; Constitutes a present obligation; and Is the result of a past transaction or......

Words: 34356 - Pages: 138

Accounting for Income Tax

...ACCOUNTING FOR INCOME TAX Aylin Alishahi University of Houston - Victoria Abstract The main idea of this paper is to introduce the concept of Accounting for Income Tax. As part of our discussion, we will understand the meaning of Income Tax and Tax Accounting. We will also look into the different terminologies of GAAP and IRS and the differences between the two. There are two basic kinds of differences between the two – temporary and permanent. In addition to looking at the basic kinds of differences, we will also look into Net Operating Losses. Examples have been provided for all the concepts to better understand the idea behind the concept. Although, this paper does not provide the detailed explanation, it will help us understand the overview of the whole theory. Keywords: Income Tax, Tax Accounting, Accounting for Income Tax, Temporary Differences, Permanent Differences, Net Operating Losses. ACCOUNTING FOR INCOME TAX Income Tax and Tax Accounting Income Tax is defines as “A tax that governments impose on financial income generated by all entities within their jurisdiction”. It is required by the law that businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. Tax Accounting is defined as “Accounting methods that focus on taxes rather than the appearance of public financial......

Words: 1087 - Pages: 5

Accounting Income

...October salary is paid on Oct 31. The payroll for each month is $3,000. 7. On November 25, EyeCandy sold all of its sunglasses inventory during the Thanksgiving sale for $80,000. EyeCandy received $40,000 in cash and remaining balance is due in two months. 8. On November 30, EyeCandy repaired a customer’s glasses and billed $100. The customer promised to pay within 1 month. 9. On December 15, EyeCandy declared $2,000 dividends to its shareholders. The dividends will be distributed to shareholders on January 5, 2006. 10. On December 28, the customer paid $100 for EyeCandy’s previous repair service. a. Make journal entries for the above transactions. b. Make adjusting entries at the end of 2005. c. What is the Net Income for the year 2005 ? d. Compose the 2005 Balance Sheet e. Show closing entries for the company’s revenue accounts. Answers: a. 1. 10/1/2005 Cash 600,000 Common stock 20,000 APIC 580,000 2. 10/1/2005 Cash 10,000 Note payable 10,000 3. 10/1/2005 Prepaid rent 12,000 Cash 12,000 4. 10/1/2005 PPE 40,000 Cash 40,000 5. 10/15/2005 Inventory 50,000 Cash 30,000 ......

Words: 666 - Pages: 3

National Origin

...to discriminate against an employee, because of their national origin. According to Renzaho, Romios, Crock, Sunderland, 2013, “Worldwide immigration has increased throughout the past century and considerably so in the past decade. The workforce and client base are becoming increasingly diverse in terms of ethnicity and culture, (pg 262).” The Bobum Corp (2011) website, “The successful delivery of a business model in a multicultural setting is often hampered by a host of factors, including chiefly language and non-verbal communication barriers between provider and clients.” There can not be a lack of respect and/or awareness of cultural traditions and beliefs in the provider-client relationship and interpersonal as well as institutional stereotyping and prejudice. There is an increasing need for refresher training when in a multicultural environment or workplace setting. One must take care to not discriminate in any way against of person for having a language barrier or cultural difference than oneself. The differences we see and feel can be used a learning opportunities. As we have emersion training opportunities in our corporation we will see our communication practices become natural and part of our normal routines. We must be able to communicate effectively verbally and non-verbally and respect the traditional practices and beliefs of our clients in order to be successful in our business. The national origin of an employee should never be a driving factor in......

Words: 459 - Pages: 2

Accounting Policies for Reporting Income

...Accounting Policies for Reporting Income Accounting Policies for Reporting Income Dana Ferretti ACC 303 Dr. M. Austin Zekeri Intermediate Accounting 1 November 20, 2011 Accounting Policies for Reporting Income GAAP (Generally Accepted Accounting Principles) refers to a common set of standards and procedures that companies follow to present their income and expenses, assets and liabilities of their financial statements. The FASB (Financial Accounting Standards Board) is the major operating organization that establishes and improves the rules of GAAP reporting. GAAP demands companies to disclose their accounting policies in their financial reports. The authoritative literature provided by the FASB, determines the classifications of comprehensive income and net income. Accounting policies are a group of specific policies that consist of principles, rules, and procedures that a company must follow when preparing and reporting its’ financial statements. These policies should include measurement systems, methods, and procedures for presenting disclosures. Accounting policies also include matters such as; depreciation methods, consolidation of accounts, inventory pricing, goodwill, and research and development costs. When these disclosures are presented, it assists the financial users and readers a better interpretation of the company’s financial status. [FASB 235-10-50] The authoritative literature of the FASB Accounting......

Words: 1246 - Pages: 5

Concepts of National Income

...CONCEPTS OF NATIONAL INCOME The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation. The important concepts of national income are: 1. Gross Domestic Product (GDP) 2. Gross National Product (GNP) 3. Net National Product (NNP) at Market Prices 4. Net National Product (NNP) at Factor Cost or National Income 5. Personal Income 6. Disposable Income Let us explain these concepts of National Income in detail. 1. Gross Domestic Product (GDP): Gross Domestic Product (GDP) is the total market value of all final goods and services currently produced within the domestic territory of a country in a year. Four things must be noted regarding this definition. First, it measures the market value of annual output of goods and services currently produced. This implies that GDP is a monetary measure. Secondly, for calculating GDP accurately, all goods and services produced in any given year must be counted only once so as to avoid double counting. So, GDP should include the value of only final goods and services and ignores the transactions involving intermediate goods. Thirdly, GDP includes only currently produced goods and services in a year. Market transactions involving goods produced in the previous periods such as old houses, old cars, factories built earlier are not included in GDP of the current year. Lastly, GDP......

Words: 1621 - Pages: 7

Caso Harvard: "The Origins of National Income Accounting"

...Caso Harvard: "The Origins of National Income Accounting" Preguntas: 1. ¿Por qué es importante la contabilidad nacional? Es decir, contar con datos sobre el ingreso nacional: sus fuentes y destino. La contabilidad nacional, es el conjunto de información estadística que permite a los responsables de la política económica determinar si la economía de un país se contrae o se expande, y si existe amenaza de inflación o recesión severa. La contabilidad nacional contiene información estratégica sobre la macroeconomía nacional. La medición del Producto Interno Bruto (PIB), es parte de la contabilidad nacional, el PIB es el nombre que le damos al valor total de mercado de bienes y servicios finales que produce un país en un año, es igual a la producción total de bienes de consumo y de inversión, las compras del Estado y las exportaciones netas a otros países. El fin más importante del PIB es medir el comportamiento global de una economía. En la actualidad los economistas del Estado se basan en una amplia variedad de fuentes, incluidas las encuestas, las declaraciones del impuesto sobre la renta, reportes de ventas al por menor y los datos sobre el empleo, de aquí que los economistas toman los datos para formar la contabilidad nacional, la cual también se apoya en la contabilidad de las empresas y la estadística para mostrar la información generada y de esta manera planificar ahorros, inversiones y consumos de un país y tomar decisiones sobre el rumbo de la nación. 2....

Words: 662 - Pages: 3