Knowledge that Transforms

Abstract This article discusses the financial administration of the United Nations. By the terms of Article 17 of the Charter the General Assembly considers and approves the budget of the United Nations and apportions the expenses among the member nations. In these respects it resembles the usual governmental legislative body which is the fund-raising and fund-granting authority for the governmental area which it serves. Also, like the usual legislative body, it has set up committees corresponding to an appropriation committee and a ways and means committee, or a committee on taxation. The Administrative and Budgetary Committee, ordinarily called the Fifth Committee, is one of the main committees of the General Assembly. It corresponds to the usual appropriation committee so far as most of this work is concerned. However, it also considers the assessment of contributions. Every resolution involving expenditure of money proposed for enactment by the General Assembly must be reviewed by the Fifth Committee which explains the effect the proposal will have upon the budget.

Abstract Net income in the accounting sense is the balance of gross income after the deduction of all expenses incurred in producing the income. Net income in the statutory sense differs from this concept. Many items considered as income by the accountant are specifically excluded and other items are taxed which the accountant does not regard as realized income. Gains arising from transactions in the corporation's own bonds are income, and losses are deductible. Bond premium which is amortized or which is written off when bonds are retired is income. Bond discount in similar transactions is deductible. Although such gains and losses are generally handled through the surplus account because they do not arise from ordinary business transactions, accountants do not object to the inclusion of these items in taxable income. Lump-sum advance rentals received without restrictions or provisional conditions, and bonus payments received for a lease are income in the year received instead of being spread over the rental period or the life of the lease.

Abstract In the corporate system, accounting has come of age. Accounting, the language of business, has grown in stature and importance and power in direct relation to the growth of industrial productivity. In the individual enterprise the measurement of production and of the division of the product occurs through the process of accounting for income. Its end-result is the income statement. Two factors make the job at this time more difficult than ever. The the public seems to have a basic lack of confidence in corporate accounting, brought about largely by a confusion of language and what has been aptly termed a growing "scatterization of methods." Being tied to a monetary unit, corporate accounting has limitations because it has no mechanism to adjust for changes in value of the monetary unit, In times such as the present when a seeming prosperity is interwoven with an obvious inflation, these factors have a cumulative effect. As the corporate system goes, so goes the economy. As the economy goes, so goes the political and social structure. Somehow the problem of economic balance must be solved or all of society will, in one way or another, either end in dictatorship or revert to the "pre-industry revolution" status of family self -sufficiency in which there are not problems of exchange or distribution.

Abstract Reviews the book "Economics of Money and Banking," by Lester V. Chandler.

Abstract Reviews the book "Business Ideas Handbook," by Editorial Staff.

Abstract Reviews the book "Mutual Savings Banks in the Savings and Mortgage Market," John Lintner.

Abstract Reviews the book "Advanced Accounting," by Arnold W. Johnson.

Abstract Reviews the book "The Medici Bank," by Raymond de Roover.

Abstract Reviews the book "Expenses and Profits of Limited Price Variety Stores in 1947," by Milton P. Brown.

Abstract In recent years social accounting or the construction of financial statements for the entire economy has become increasingly important in the thinking of the general public and in the formulation of policies by Government officials and businessmen. The over-all financial statements now in use or potentially of future importance are based on three types of accounts completely familiar to all business accountants, namely, income accounts, balance sheets and a derived sources and uses of funds analysis. The last of course, shows the origin and disposition of funds for capital purposes as well as on current account. Such financial statements are now recognized as essential in the appraisal of economic activity and to the analysis of the significant interrelationships within the economy, however, they must be supplemented by several other types of related data, notably by deflated figures expressing economic activity in real as well as dollar terms and by what might be called anticipation. The latter category includes new and unfilled orders and budget data, particularly planned capital expenditures. Anticipation statistics, which like the historical figures are also based on accounting data, are of particular importance since the interest in the past and present is largely dependent on the insight it gives one into the future.