Accounting income attempts to capture elements of both permanent income and economic income, but with measurement error.

Name: Accounting income attempts to capture elements of both permanent income and economic income, but with measurement error.
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Quizplus · Accepted Answer

Accounting income is intended to reflect both the permanent income and economic income concepts, but it is subject to measurement error due to the use of estimates and other accounting conventions.

Accounting Income Attempts to Capture Elements of Both Permanent Income