Lev and Zarowin (1999) argue that the there has been a decline in the usefulness of financial information in the U.S. resulting from the inability of the current financial reporting system to contemporaneously capture changes in firms' operations and economic conditions. As a result, it appears...

This article contributes to the fuzzy logic application literature in accounting by examining a key issue in the use of fuzzy logic: how to find an optimum number of classes to minimize the decision maker's cost. Two costs are assumed: (1) we assume fuzziness is costly and thus should be...