The term “Social accounting” or “National income accounting” was first popularized by J.R. Hicks in 1942. National income accounting is a method to present statistically the interrelationship between the different sectors of the economy for a thorough understanding of the economic conditions of the entire economy. National income accounting is a method of studying the structure of the body economy.
It is a technique of presenting information’s, about the nature of the economy of a society with a view not merely to get an idea of its prosperity, past or present, but also to get guidelines, for collective policy to influence the economy. In short national income accounting describes statistically the economic activities of the different sectors of the entire economy, indicates their mutual relationship and provides a framework for analysis.”
According to Peacock and Copper: – National Income accounts imply an organised arrangement of figures relating to economic activity of a given region.
According to Dornbush and Fisher: – National Income accounts provide us statistical frame work for describing relationship among output, income and spending.
National income accounting reflects the aggregate value of final output produced in the various sectors of the economy such as agriculture, industries etc. and the distribution of income among different factors and final expenditure of the economy.