The accountant's concept of income is distinguished from the economist's by

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The accountant's concept of income is distinguished from the economist's by the principle of realization. This principle is concerned with when income is considered earned and realized, typically when it is received or when the right to receive it has been established. Economists, on the other hand, may focus on broader concepts of income including potential or expected income, which may not be realized in the current period. The principle of accrual refers to the accounting practice of recognizing revenue and expenses when they are incurred, not just when they are actually received or paid. The principle of relativity is not directly related to the concept of income.

The Accountant's Concept of Income Is Distinguished from the Economist's