'The Increase in Net Worth View of Income (Held Prior

question 17

Essay

'The increase in net worth view of income (held prior to the First World War)was gradually supplanted by the notion that income had to be realised'.' J.Godfrey,et el,'Accounting Theory',7^th Ed.p.299.
Explain what this statement means and why the change in view point came about.Which view of income is currently gaining the ascendancy?

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Definitions:

Demand Curve

A graph that shows the relationship between the price of a product and the quantity of the product demanded.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less expensive alternatives as prices change, thereby altering their consumption patterns.

Baby Boomers

The demographic cohort following World War II, typically defined as individuals born from 1946 to 1964, characterized by a significant increase in birth rates.

Health Care Workers

Individuals employed within the healthcare industry, including doctors, nurses, therapists, and other allied health professionals.