Q1: Corporate Performance Measurement: Despite the sophistication that financial accounting has reached thus far, accounting net income disclosed in corporate reporting is not a scientifically proven figure.?

Required: Address the statement in light of what we discussed in the lecture and the prescribed readings:

readings list you should read to answer Q1:

Solomons, D. (1961). Economic and accounting concepts of income. The Accounting Review, 36(3), 374-383.

Kimball, H. G. (1935). The Importance of Understanding Income and Profits. The Accounting Review, 131-135.

Schmidt, F. (1931). Is appreciation profit?. The Accounting Review, 289-293.

Kelley, A. C. (1951). Can Corporate Incomes Be Scientifically Ascertained?. The Accounting Review, 26(3), 289-298.

Brief, R. P., & Owen, J. (1970). The estimation problem in financial accounting. Journal of Accounting Research, 8(2), 167-177.

Q2: What do you think of an accountant who does not mind swearing by the All-Mighty that the income s/he discloses in the income statement is true?