This paper discusses the implications of using a change in working capital approach to measure accruals and the importance of the distinction between accruals and deferrals in the context of evaluating extant earnings management models. From this discussion, I develop a cash flow mapping model...

We exploit survey data from the Panel Study of Entrepreneurial Dynamics to investigate the roleof accounting in the likelihood that a small business more quickly achieves and maintains positiveoperating cash flow (profitability). We examine several potential aspects of accounting includingthe...