I. Introduction, 327; the measurement of concentration, 328; are most industries concentrated?, 329. — II. Concentration and oligopoly not identical, 331; the importance of conditions of supply, 332; “ease of entry” and “elasticity of supply,” 336; agricultural programs an example of concentration, 339; need for studies of elasticity of supply, 340. — III. Oligopoly may not raise prices, 341; appraising certain empirical evidence, 344. — IV. Summary and conclusion, 345.
This article presents information on the relation between the scores of elementary and advanced accounting tests in the U.S. In the American Institute of Accountants', a College Accounting testing program, the academic progress of accounting students is evaluated with the Level I Achievement Test at the end of the first year of study, and with the Level II Achievement Test at later stages of training. Results of these tests are compared, to show the extent to which accounting majors, both as individuals and as college groups, tend to rank similarly at the elementary and advanced levels. The findings indicate that the Level I test is useful as a predictor of success in advanced accounting study, as measured by the Level II test, but they also show that there are some substantial differences in the relative rankings on the two levels of the test. A study of the correlations between scores on the Level I and Level II Achievement Tests of 2,192 accounting students in 203 colleges and universities were tested. Forty-two per cent of the students in the third quarter on the Level I test and 22 per cent of those in the second quarter ranked above the median on the Level II test. It appears that a student who ranks between the 50th and the 75th percentiles on the Achievement Test as a first-year student has about twice as good a chance of rating above average on the Level II test.
The article presents intermediate accounting instructions in the year 1955. Instruction in intermediate accounting was surveyed through a questionnaire that was sent to 100 colleges in the spring of 1955. Answers were received from two-thirds of the colleges. The survey dealt with the state of instruction as it is, rather than as it might be, but the latter aspect was not entirely overlooked. The course seems to be firmly established in schools offering a more or less complete study of accounting. Schools with a three-year program in accounting offer the intermediate course in the second year, typically for the full year. The force of this impression is reduced, though not materially, by two further disclosures. Second, certain topics in a book were omitted, even in a year course. Leading the list of topics omitted is review of accounting process, which was mentioned 4 times. In the survey, it was asked that should the teachers be tagged for intermediate accounting as one of the specialized fields in which to teach. The answers received show that 31 schools regard the intermediate course as a specialized field, 16 do not, rotating teachers; have combination policies, and 12 pursue no positive policy on the question.
To many accountants depreciation as we know it today represents an idea which is a generally accepted accounting principle. Business has not always had such respect for depreciation accounting. This article has as its goal a highlight review of some of the interesting changes, which have occurred in the development of this accounting concept. The idea of depreciation was not clearly established by the latter part of the nineteenth century. In 1876, the United States Supreme Court stated, in referring to the determination of the profit of a merchant, that it was unusual to take into account depreciation on a building in which a merchant maintained his business. In 1878, the United States Supreme Court criticized the practice of establishing depreciation reserves through periodic charges to operating expense, and held that only the actual expenses of renewals could be charged to operating expense. The idea as expressed by the Supreme Court was apparently the common thinking of business leaders, for the Third National Convention of Railroad Commissioners in 1879 adopted a report on uniform accounts which included the following instruction no expenditure is chargeable for an actual increase though unless it is made on old work in such a way as to clearly increase the value of the property over and above the cost of renewing the original structures. Corollary to this idea was the thought that if property were properly maintained there would be no depreciation.
This article provides tips for answering examination questions of certified public accountants' (C.P.A.) examination. The results of C.P.A. examinations given in the past show that each year the percentage of candidates passing the entire examination is relatively low, ranging from ten to thirty-five per cent in the various states. Examiners have long been puzzled by this condition. Is it due to insufficient formal education, lack of practical experience, inability to express oneself or other causes. While it was found that the best of candidates, under the pressure of the examination, will give an occasional poor answer.