Abstract Tax allocation procedures used today produce inconsistent treatment on the balance sheet. When the asset's accounting basis is greater than the tax basis as the result of differences in timing, a credit must be carried on the balance-sheet. This credit has variously taken the form of a liability, a reduction in a fixed asset , a reduction in a deferred charge, or even an allocation of retained earnings. As previously mentioned, the major difference has been that due to depreciation. Here, the general practice has been to show the resulting credit as a non-current liability. To many accountants, this treatment is a distortion of the facts. At the moment of liability recognition for accounting purposes, no liability seems to them to exist. The liability may never come into existence, or its amount may be greater or less than the amount originally booked. An acceptable, but not widely followed, alternative has been to credit the accumulated depreciation rather than the liability account in these circumstances.

Reviews the book "Using Accounting In Business," by Robert H. Van Voorhis, Clarence L. Dunn and Fritz A. McCameron.

Abstract This article focuses on the role of certified public accountants (CPA) in management services. Demands on businesses have multiplied over the years as a result of the changing nature of competitive markets, rapid developments in technology of production equipment, availability and increased use of high-speed computers, expansion of knowledge in almost every field of learning, and a constant increase in the number, variety, and complexity of laws affecting business operations. Yet, in spite of all the encouragement given by professional organizations, the cries of business managers for more help and the cold statistics on the volume and lucrative rewards of the consulting business, many CPA have apparently not entered this field nor are they relatively frequently called upon by firms seeking consulting services. Some CPA firms are very active in rendering management services, but the number of firms who are is quite small. Further- more, revenue received by a CPA for management services is a very small portion of the total annual fees of $550 million paid by businesses for consulting work, as well as a small percentage of the total revenues realized by a CPA.