ABSTRACT
A Pervasive fallacy invalidates our traditional theories of revenue recognition and matching, and latter-day theories of economic income and replacement-cost accounting. Elsewhere, I have described this error to practitioners; 1 here, I address those who engage, or intend to engage, in accounting research. I try to explain:
The general nature of this fallacy;
why we have failed to recognize it; and
what we should do about it.
