The article focuses on financial statements of national wealth and national income. According to the author, an article published in the "Journal of Political Economy," by Morris A., points out that the national income statement has relationships to the statement of national wealth or national balance sheet which are analogous to the relationships of a corporate income statement to the corporation's balance sheet. This observation intrigues the accountant. The possibilities of setting up financial statements for the national income and the national wealth are for the most part unexplored in published works on these subjects. The interrelationship between the income sheet and the balance sheet is here especially important. Most of the previous studies of national income in the United States have necessarily made use of accounting data, both as found in census reports and as secured directly from business enterprises. Some of the previous studies have attempted estimates both of the national income produced, and of the national wealth, classified by industries.

Some concept of income holds a prominent place in the consciousness of every individual. The very essence of economic activity is that of earning and enjoying income. As in the case, however, of many other terms of universal usage both in science and in business, the various concepts involved are confused and often conflicting. Even as a term used in technical economics, the definitions of income found in the writings of the leading authorities show pronounced differences of opinion. Income may be defined as the gain derived from capital, from labor, or from both combined, provided it be understood to include profit gained through the sale or conversion of capital assets. Net individual income is the flow of commodities and services accruing to an individual through a period of time and available for disposition after deducting the necessary cost of acquisition. Income in the broad sense all wealth which flows in to the taxpayer other than as a mere return of capital. Income or profit of a given period may be defined as the increase in proprietorship which has taken place during that period, making due allowances for any part of such increment as may have been distributed.