More Than a Numbers Game

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The world is filled with accounting texts that assist readers in preparing, auditing, interpreting, and explaining corporate financial statements. However, a gap exists for a book that provides context and discussion on divisive issues like taxes, debt, options, and earnings volatility. This work focuses on the "why" of accounting rather than the "how," offering a highly readable history of U.S. corporate accounting. Inspired by Arthur Levitt's pivotal 1998 speech at New York University, which highlighted the often-unquestioned practice of earnings management and foreshadowed the collapse of U.S. corporate accounting three years later, the narrative traces how accounting evolved over a century. It transformed from a tool for American railroad managers to communicate with British investors into a facilitator of corporate fraud, making for a compelling business story. This book is distinct from others that merely recount accounting scandals; it presents a history of ideas. Each chapter delves into controversial topics that have arisen over the last century, providing historical context and discussing the individuals involved to enhance the relevance of the concepts. The author illustrates how economics, finance, law, and business customs have shaped the evolution of accounting, drawing from a career spent engaging with accounting information.