Abstract The article focuses on the concept of "operations" in accounting and its influence in income determination and income theory. The purpose of the study is to develop the accounting concept of operations and to determine its usefulness and implications in areas of income determination and income theory. The primary step toward this objective involves an analysis of business transactions in order to reveal similarities, dissimilarities and relationships among them. A significant group of transactions is found in profit-seeking transactions, which deal with the utilization of funds contributed by various financial interests for the purpose of creating income. Interpretations of business enterprise operations by accountants, economists and financial analysts are studied in order to determine current ideas in these related fields. Out of these ideas of operations, an integrated pattern of related ideas may be developed. The usefulness of the concept is tested by applying it to problems in income theory. Practical applications of this concept are possible in two accounting areas, namely, income determination and income reporting.
James S. Schindler (Thu,) studied this question.