Income measurement Concepts Economic Income VS, Accounting Income: Economic Income and Accounting Income reflect similar concepts BUTH Accounting income is a product of the financial reporting environment--accounting standards, enforcement mechanisms, managers'incentives, etc HENCER Accounting income can diverge from economic income( yielding accounting distortions)Economic Income vs. Accounting Income: Economic Income and Accounting Income reflect similar concepts BUT: Accounting income is a product of the financial reporting environment—accounting standards, enforcement mechanisms, managers’ incentives, etc. HENCE: Accounting income can diverge from economic income (yielding accounting distortions) Income Measurement Concepts