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
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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
June 1
LANGUAGE
EN
English
LENGTH
43
Pages
PUBLISHER
Academy of Accounting Historians
SELLER
The Gale Group, Inc., a Delaware corporation and an affiliate of Cengage Learning, Inc.
SIZE
317.8
KB

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