Reviews the book "A Program for Unemployment Insurance and Relief in the United States," by Alvin H. Hansen, Merrill G. Murray, Russell A. Stevenson and Bryce M. Stewart.
Abstract Value has long been the central theme of economic philosophy. Value is a dual concept rather than a simple one. Value-in-use comes to be an expression of the direct utility present, and value-in-exchange comes to be an expression of the marginal utility. In accounting, "cost versus value" is, in fact, "value-in-use versus value-in-exchange." The former seems a natural material for accountants to treat, for the primary function of accounting is to record cost-price as it enters an enterprise and to trace cost-price through many intricate conversions until in the end it leaves the enterprise in one form or another. The latter seems an unnatural material for accounting because value-in-exchange is essentially subjective and very fleeting at best. It would seem, therefore, that accountants would have a direct responsibility for correctly disclosing value for use but very little responsibility for exhibiting an estimate of value for exchange. The early choice of the balance sheet as the main statement tends to place finance above operations, and finance, in turn, looks upon value-in-exchange as basic.
Abstract The article discusses the property rights of stockholders under the 1933 Illinois Business Corporation Act. Throughout the article the rights of the stockholders are treated as contract rights. It is, true that the contract rights of stockholders are subject to the provisions in the articles of incorporation and the general incorporation act. So, theoretically, it would seem that when directors exercise powers, which they can exercise under the provisions of the articles and the act, they are complying with the terms of the contract under which stockholders contribute their capital. It is possible under the Illinois Act to remove the stockholder's pre-emptive right to subscribe to additional stock in the corporation when it is issued. This is accomplished by making explicit provision to that effect in the articles of incorporation. The articles need not give the directors the power to fix the consideration to be received for shares or to value the property exchanged for shares. The Business Corporation Act provides that the consideration for the issuance of shares may be paid, in whole or in part, in money, in other property, tangible or intangible, or in labor or services actually performed for the corporation.
Abstract Regardless of the ultimate position, which the National Industrial Recovery Act may occupy on the political horizon, it has already succeeded in making the business world increasingly conscious of cost accounting. There is no reason to expect that the ground gained will ever be lost and every reason to believe that through trade associations and similar organizations cost accounting will gain additional importance in the United States' national business life. Therefore it is advisable to survey the cost courses given in the universities and colleges of the country to see whether they are designed to give the student the proper training in cost accounting. Probably it is safe to say that when the instructor approaches the cost course with such an attitude, the subject continues to remain a mystery to the student. In reality the study of cost accounting is simply an expansion of the study of one of the functional groups presented in financial accounting, the manufacturing function. In cost accounting the student learns how the information, which he used in financial accounting is obtained for a manufacturing concern.