Accounting income takes no account of the cost of the capital employed by a firm.

Name: Accounting income takes no account of the cost of the capital employed by a firm.
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Accounting income only takes into account the revenue and expenses of a firm, and does not consider the cost of the capital (such as interest on loans or dividends paid to shareholders). This can result in an incomplete picture of a firm's financial performance and profitability.

Accounting Income Takes No Account of the Cost of the Capital