A claim is commonly made that cash flow and accrual accounting methods for valuing equities must always yield equivalent valuations. A recent paper by Lundholm and O'Keefe (2001), for example, claims that, because of this equivalence, there is nothing to be learned from empirical comparison of...

This article addresses the accounting process for a long term construction contract and the effect of recent income tax reform on revenue recognition for income tax liability purposes. The Tax Reform Act of 1986 (TRA '86) introduced several significant changes in tax accounting for long term...