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The Accounting Review Vol. 29 No. 3 1954

ACCOUNTING THEORY AND THE LARGE CORPORATION.

Waino W. Suojanen

Associate in Accounting, University of California, Berkeley. 1

Abstract

The article presents an analysis of the implications social concept of the firm upon accounting theory and suggests a supplementary method of income reporting. In common with other economic organizations, the enterprise purchases input factors and produces goods and services which in turn are sold in the market. As has been developed previously, if the enterprise is considered to be an institution, its operations should be assessed in terms of its contribution to the flow of output of the community. If the income generated in the enterprise is to be analyzed on the basis of social considerations, then the traditional type of income statement is insufficient. The purpose of the value added concept of enterprise income is the measurement of the flow and its division among the participants in the organization.

DOI
10.2308/tar-7110323
Volume
29
Issue
3
Pages
391-398
Language
en
Sources
openalex crossref

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