The comparison of the beginning and ending capital (net assets) after adjusting for an additional investments or disinvestment during the period, and indicating the difference to be corporate income is termed the financial capital maintenance concept physical capital maintenance concept transactional approach asset valuation approach When net assets are recorded at their historical cost and changes in those assets are not recorded unless an event, transaction, or circumstance occurs, the financial capital maintenance approach is being used transaction approach is being used physical capital maintenance approach is being used comprehensive income approach is being used In an accrual-based transactional approach, net income is typically defined as revenue - expenses + gains + losses revenues - expenses revenues - expenses + gains - losses increase in net assets from non-owner transactions Which statement best defines income concept? Revenues and expenses are more consistent with the capital maintenance concept to income measurement than with the transactional approach The capital maintenance approach to income measurement relies on historical cost. The capital maintenance approach to income measurement is the approach used in accounting today. The transactional approach to income measurement is applied using the accrual basis of accounting. On December 31, 2009, the net assets of Marino Manufacturing amounted to $40,000. Net income calculated by using the financial capital maintenance concept amounted to $12,000. During the year, additional common stock was issued for $8,000, and $5,000 of dividends were paid. The net assets at January 1, 2009, amounted to $31,000 $37,000 $20,000 $25,000 Comprehensive income is an important concept in accounting because it represents all changes in equity changes in equity from non-owner sources changes in Liabilities minus Assets the impact on equity of all transactions