Concepts of Capital and Income.

Abstract This article discusses concepts of capital and income. In December 1936, a joint session of economists and the accountants was held in which they discussed fundamental concepts and theories of capital and income. Since both the economists and the accountants deal in large part of common group of phenomena, it is important that any gaps, which may exist between economic theory and accounting theory, should be unbridged. The concepts of capital and income lie at the very heart of many economic and accounting problems that are of great concern from the standpoint of formulation and administration of public policies. In the session, economist Frank Albert Fetter discussed his major's interest of career and he elaborated the introductory marks on the study of economic theory, terminology and their history. Accountants can most effectively genre both their private clients and the public interest; they can develop accounting principles that have a secure foundation in sound economic theory. Economists can better explain a profit-seeking economy.