Sprouse's What-You-May-Call-Its: Fundamental Insight Or Monumental Mistake?(Interfaces) (Report) Sprouse's What-You-May-Call-Its: Fundamental Insight Or Monumental Mistake?(Interfaces) (Report)

Sprouse's What-You-May-Call-Its: Fundamental Insight Or Monumental Mistake?(Interfaces) (Report‪)‬

Accounting Historians Journal 2010, June, 37, 1

Accounting Historians Journal
    • €2.99
    • €2.99

Publisher Description

Abstract: We critically evaluate Sprouse's 1966 Journal of Accountancy article, which prodded the FASB towards a balance-sheet approach. We highlight three errors in this article. First, Sprouse confuses necessary and sufficient conditions by arguing that good accounting systems must satisfy the balance-sheet equation. Second, Sprouse's insinuation that financial analysts rely on balance-sheet analysis is contradicted by contemporary" and current security-analysis textbooks, analysts' written reports, and interviews with analysts. Third, and most crucially, Sprouse does not recognize that the primary role of accounting systems is to help managers discover and exploit profitable exchange opportunities, without which firms cannot survive. INTRODUCTION

GENRE
Business & Personal Finance
RELEASED
2010
1 June
LANGUAGE
EN
English
LENGTH
43
Pages
PUBLISHER
Academy of Accounting Historians
PROVIDER INFO
The Gale Group, Inc., a Delaware corporation and an affiliate of Cengage Learning, Inc.
SIZE
317.8
KB

More Books Like This

The Routledge Companion to Financial Accounting Theory The Routledge Companion to Financial Accounting Theory
The Routledge Companion to Financial Accounting Theory
2015
The Continuing Debate Over Depreciation, Capital and Income (RLE Accounting) The Continuing Debate Over Depreciation, Capital and Income (RLE Accounting)
The Continuing Debate Over Depreciation, Capital and Income (RLE Accounting)
2014
Harold Cecil Edey Harold Cecil Edey
Harold Cecil Edey
2019
Profitability, Accounting Theory and Methodology Profitability, Accounting Theory and Methodology
Profitability, Accounting Theory and Methodology
2007
Behavioral Accounting vs. Behavioral Finance Behavioral Accounting vs. Behavioral Finance
Behavioral Accounting vs. Behavioral Finance
2009
Accounting Standards: True or False? Accounting Standards: True or False?
Accounting Standards: True or False?
2013

More Books by Accounting Historians Journal

Corporatism and Unavoidable Imperatives: Recommendations on Accounting Principles and the ICAEW Memorandum to the Cohen Committee (Institute of Chartered Accountants in England and Wales ) Corporatism and Unavoidable Imperatives: Recommendations on Accounting Principles and the ICAEW Memorandum to the Cohen Committee (Institute of Chartered Accountants in England and Wales )
Corporatism and Unavoidable Imperatives: Recommendations on Accounting Principles and the ICAEW Memorandum to the Cohen Committee (Institute of Chartered Accountants in England and Wales )
2004
The Impact of World War II on Cost Accounting at the Sperry Corporation. The Impact of World War II on Cost Accounting at the Sperry Corporation.
The Impact of World War II on Cost Accounting at the Sperry Corporation.
2003
Financial Crises and the Publication of the Financial Statements of Banks in Spain, 1844-1868. Financial Crises and the Publication of the Financial Statements of Banks in Spain, 1844-1868.
Financial Crises and the Publication of the Financial Statements of Banks in Spain, 1844-1868.
2004
Financial Reporting in 1920: the Case of Industrial Companies (Report) Financial Reporting in 1920: the Case of Industrial Companies (Report)
Financial Reporting in 1920: the Case of Industrial Companies (Report)
2010
Accountability and Financial Control As 'Patriotic' Strategies: Accomptants and the Public Accounts Committee in Late 17th and Early 18Th--Century Ireland. Accountability and Financial Control As 'Patriotic' Strategies: Accomptants and the Public Accounts Committee in Late 17th and Early 18Th--Century Ireland.
Accountability and Financial Control As 'Patriotic' Strategies: Accomptants and the Public Accounts Committee in Late 17th and Early 18Th--Century Ireland.
2003
Early American Corporate Reporting and European Capital Markets: The Case of the Illinois Central Railroad, 1851-1861. Early American Corporate Reporting and European Capital Markets: The Case of the Illinois Central Railroad, 1851-1861.
Early American Corporate Reporting and European Capital Markets: The Case of the Illinois Central Railroad, 1851-1861.
2006