• National Income Accounting is a government accounting system that measures a country’s economic activity and provides insight into how the economy is performing.

  • Such a system would include the total income of domestic corporations, paid wages, as well as data on sales tax and income tax for companies.
  • National income accounting systems allow countries to assess the current standard of living or income distribution among the population, as well as assess the impact of various economic policies.
  • However, the accuracy of the national income accounting analysis depends on the accuracy of the collected data.