The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Income

Collection:: Economics Books

Sec. 10] INCOME ACCOUNTS 139 $6147 being put into the safes of the company or deposited in bank. Even this last operation is a true outgo; for a cash drawer and a bank account are, as we have seen, always debited with what is put into them. There remains, there- fore, no final balance for the abstraction called the ‘“com- pany.” Just as, in the capital accounts, the company’s excess of assets over liabilities to other than stockholders constitutes the true liability to the stockholders themselves, so, in income accounts, any excess of income over outgo to other purposes than dividends paid to stockholders con- stitutes a true outgo for the benefit of those stockholders. § 10 We see, then, that the guiding principle for the construc- tion of the income account, either of real or fictitious per- sons, is simply to make a complete list of the services and disservices which flow from each and every item of the assets and liabilities. This simple relation between capital and income accounts is commonly obscured by the fact that it is not practically convenient to include in one’s capital ac- counts certain items of assets and liabilities, although their services and disservices are entered in the income account. This is true, in particular, of one’s own person, and such claims as are coupled with equal obligations, as leases and contracts with laborers. These are not and, from a purely practical point of view, ought not to be entered in the capital account; but much of the income and outgo from them, such as wages and rent, are entered in the income account. In respect of income accounts the use of one’s dwelling is omitted, as well as the unpaid-for services and disservices of human beings. A shopkeeper usually keeps a punctilious record of the work of his employees, but sel- dom any of his own personal work. If he owns the build- ing he occupies, he will not usually include its use in his accounts. In private life he seldom or never includes in his accounts the use of furniture.

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