Also in the late 1970s and early 1980s, there was considerable discussion concerning the quality of corporate

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Also in the late 1970s and early 1980s, there was considerable discussion concerning the "quality" of corporate earnings. Straight-line depreciation and the first-in-first-out (FIFO) inventory valuation methods were often cited as the causes of "poor quality" earnings. Further, it was argued that these accounting methods effectively resulted in tax overpayments. Discuss the reasons for both contentions.
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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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