Knowledge that Transforms

Reviews the book "Manual on Commercial Law," by A. Lincoln Lavine.

Abstract The article focuses on accounting reports for management investment companies in the U.S. In the past 15 years American investment trusts and investment companies have developed from a little-known type of financial institution to the stature of an established industry. In this relatively short period the new industry has been faced with the varied problems of developing investment, trading and dividend policies, reporting techniques and accounting principles and procedures. It is not surprising that the same rate of progress was not maintained in all fields but it is unfortunate that one of the early lags appeared in the field of reporting techniques. In their early years, American investment companies were influenced to some extent by experiences of British investment trusts. In addition, American companies were faced early in the development of the industry with the accounting and reporting problems arising from a very rapid increase in size, rapidly increasing stock prices and subsequent drastic breaks in stock prices. The rapid increase in the importance of American investment companies can be indicated by tracing the number of companies in existence and assets of these companies.

Reviews the book "Government and Economic Life," by Leverett S. Lyon, Myron W. Watkins and Victor Abramson.

Reviews the book "A Report of Progress."

Abstract The general use of a C.P.A. certificate as a means of measurement or recognition of an accountant's ability has become so widespread, and the certificate so coveted on the part of most accountants that it would seem as if all who are interested in the profession should be aware of the requirements for the certificate in the various states. In fact, knowledge of the accounting law and of the regulations imposed by the administrative board in each state is probably the first requirement of any potential applicant. The most uniform provisions in all states relate to the candidate's citizenship, his moral character, the examination and the granting of reciprocal certificates. All states require an applicant to be citizen of the United States or to have declared his intention of becoming naturalized. All states require a candidate to be of good moral character. The applicant is usually required to furnish three or more affidavits or references to indicate this quality. The most variable requirement of all is that of professional experience. This article is of help in visualizing the most common requirements.

Reviews the book "The Illinois Segment of the Nation's Economy for 1935."

Reviews the book "Security Analysis," by Benjamin Graham and David L. Dodd.

Abstract The article presents accounting case of Underwood Elliott Fisher Co. The enterprise, one of the leading manufacturers of business machines, was incorporated on March 8, 1910, in Delaware under the name of the Underwood Typewriter Co. On December 29, 1927, the name was changed to Underwood Elliott Fisher Co. The corporation manufacturers typewriters and flat-surface accounting and writing machines, including the Elliott Fisher with flat platen and the Underwood and Sundstrand with cylindrical platen. A subsidiary manufactures tally rolls, carbon paper, ribbons and other supplies for the machines of the parent company. The company's products are marketed primarily through branches in the U.S. and through dealers in foreign countries. During the past ten years the surplus accounts of the Underwood Elliott Fisher Co. has undergone two complete cycles involving transfers between earned surplus and capital surplus, arising in the first instance out of the virtual elimination of intangible assets from books of the company.

Abstract In the September issue of the journal The Accounting Review under the title, "Deficiencies in Federal Accounting," it was discussed, among other things, the question as to whether budget accounting should be a part of the general accounting system. The journal took the negative position on this question. The early development of governmental accounting seems to have been along lines generally similar to those of commercial accounting. It was in the Handbook of Municipal Accounting that certain distinctions were more clearly recognized. Among these was an adequate accounting for budget operations, in such form as to indicate the position of the budget at all times. This meant an accounting for encumbrances, since such items must be allowed for in order to show current budget condition. The disadvantage of this procedure came gradually to be understood, as well as the possibility of bringing the two sets of records together. By 1930 the use of a consolidated system, in which the budgetary transactions are an integral part of the general accounting system, was recognized and applied in many places. The control of budgetary operations in the general accounting system does not necessarily mean the inclusion of complete budgetary accounts in the central accounting records.

Reviews the book "Effective Business English," by Robert Aurner.