Concepts of Income 三 CONOMIC ACCOUNTING wealth that values are flows to measured by a individuals transaction changes in value in individuals appr。ach wealth income realized unrealized gains as a result of gifts completed inheritances are transactions considered Icome use historical costConcepts Of Income ECONOMIC – wealth that flows to individuals – changes in value in individuals’ wealth • unrealized gains • gifts & inheritances are considered income ACCOUNTING – values are measured by a transaction approach – income realized as a result of completed transactions – use historical cost