• Introduction ▾
    • Foreward
    • Preface
    • Overview
  • Political Economy ▾
    • The Economy
    • Commodities
    • The Enterprise
    • Accounting
    • Capital
    • Profit
    • Employment
    • Distribution
    • Wages
    • Interest
    • Prices
    • Money
  • Economic Policies ▾
    • Five main principles
    • Cleaning up the capital market
    • Cleaning up the labor market
    • Liberating civil society
  • About▾
    • Who are we?
    • Original Documents
    • Appendixes
Home› Part II – Political economy propositions›Chapter 4 - Accounting

Chapter 4 – Accounting

It is a truism to say that economic accounts use economic principles. But, after all, what principles are we talking about? And how could an exact economic science be achieved without having in its pillars proven principles of economic accounting?

Political economy was born before all the founding concepts of economic accounting were brought to light. To the old confusions that persist, the economic vocabulary in use today adds new and often misleading categorizations, like conjuring tricks.

The evasion begins with the concept of economic accounting. Although its existence and precise definition are indisputable, it is set aside. This makes it possible to repress the division of all economic accounts into homogeneous sub-assemblies, but different on a few crucial points. Instead of making progress in eliminating the denial of elementary economic realities, we maintain amalgams of variable geometry according to the ideological ends pursued.

Propositions

  • 4.1 The general theory of economic accounting is mesonomic.
  • 4.2 The distinction between stock and flows is an axiom of economic accounting.
  • 4.3 The stocks of mesonomic entities are for financing and investment.
  • 4.4 Financing stocks generally consist of a non-borrowed part and a borrowed part.
  • 4.5 An entity's investment stock often includes investments and almost always equipmentEquipement.
  • 4.6 A balance sheet is the summary of the stock accounts.
  • 4.7 A profit and loss account is the synthesis of income and expense flowsComptabilite_Charge.
  • 4.8 In general accounting, depreciation of equipment is only relevant to enterprises.

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