The article focuses on business-type statements in the budget of the U.S. Business-type statements are printed in the budget for Government-owned corporations and other revolving funds established by law or regulation. Accounting and budgeting for business type operations have definite characteristics not generally found in many of the ordinary government-type fiscal procedures. The statement of sources and application of funds in the business-type presentations is the counterpart to the schedule of amounts available for obligation used in the budget for funds subject to appropriation controls. The purpose of the statement is to show the amounts made available to the fund and how these amounts have been used. Funds applied to operations reflect amounts used for acquiring fixed and other long-term assets, expenses incurred that involve working capital items, and the net increase in working capital other than the U.S. Treasury cash for the fiscal period. The "funds applied to" and "funds provided by" financing show the changes in amounts of money relating to transactions with the treasury

The article focuses on the evolution of accounting functions. During the last hundred years the roles of accounting have undergone changes as startling as the developments in methods and techniques of production. These changes in accounting functions, however, are less obvious to the untrained observer than the giant industrial strides which have made The U.S., the economic envy of the world. Yet the evolution of the two are closely related. The roles which accounting has played at various times have been directly related to the needs of the businessman. It is this thesis which will be explored in the following paragraphs. Unquestionably, many ideas and procedures in accounting have developed fortuitously or have been the result of theorizing which was entirely independent of any pressing requirement of the moment. It is also readily apparent that the pressure of government upon accounting development has been significant. With the current public regulation of many business activities, the administration of economic affairs has transcended the management of the individual enterprise. When this change has taken place, accounting has followed management into the broader area with the development of a social control function of accounts

The article focuses on the urgent need of an accounting philosophy. According to the author, efforts to meet this challenge will be complicated by the rather undefined position of the accounting profession in the economic structure of society. This is due to a large extent to the historical development experienced over the first decades of the industrial and commercial expansion, when the economy in most parts of the world was free from present day restrictions, when taxes were irrelevant and prices, wages were not regulated. The relationship between management and accounting is one of the key problems of the profession. Accounting theory draws no line between basic functions and the last possible application of accounting techniques. To reach ultimate conclusions and to derive therefrom managerial decisions is the logical and real fulfillment of accounting, regardless of whether or not functional divisions and procedural differentiations are made in practice. Regardless of the dispensation of administrative responsibilities, which depend on the individual structure of the respective enterprises, the recognition of the ultimate goal of accounting as identical with that of management confronts the accounting profession with the most complex problems of business economics in general

This article has attempted to establish the position that the significance of business income for corporate reporting lies primarily in its usefulness as a measure of corporate performance in diverting a stream of resources from the economy, and that it should be developed primarily to serve this function. It has been shown that concepts of income which will best serve as a tax base, as a factor in rate regulation, as an element of national income estimates, and as a basis for managerial decisions are all dependent upon specialized and divergent factors which are related to a variety of objectives. Each of these uses constitutes a special purpose problem by itself. As was suggested at the beginning of the discussion, an acceptance of this thesis is merely a prelude to the major work of deciding upon the business income concept and the means of measuring income so conceived which will best serve this basic need. The prelude in this case, however, should not be written after the major score is completed. Until an area of agreement is reached as to the purpose to be served by the measurement of business income the discussion of the business income problem proceeds in a vacuum

THE postwar instability of sterling has been produced part by the deficits of the independent sterling countries.' Until lately, these countries financed substantial import deficits from their own sterling balances and replenished their reserves without difficulty, mainly from an uninterrupted capital outflow from the United Kingdom and from enlarged export earnings during the post-Korean raw materials boom. Only recently have they faced a shortage of sterling exchange, resulting part from the reintroduction of monetary restraint the United Kingdom late I95I and early I952. The appearance of this shortage of sterling focuses attention upon the strategic role of monetary discipline, both Britain and the independent sterling countries, if the United Kingdom is to achieve for sterling a greater stability than has been attained since I945. Development of the sterling area. Before I9I4, many nations came to use sterling for financing foreign trade because of its universal acceptability. These nations tended to have close monetary and trading ties with Britain, selling much of their exports through British commercial houses; many were dependent upon the London market for capital; and virtually all major commercial banks kept balances and rediscounted bills London. With the end of hostilities I9I8, Britain tried to reestablish the international position of sterling. By I925, the pound had been restored to its prewar gold parity at the risk of internal deflation Britain. Capital lending was also resumed on a large scale, and Britain had a current-account surplus during the I920's. By I930, fact, Britain's total foreign assets were rebuilt almost to the prewar volume. although most of the new outflow had been invested within British Empire countries. Abandonment of the pound's gold parity September I93 I, and the resulting depreciation, altered sterling arrangements. Faced with the choice of following either sterling or gold, the British Commonwealth nations (except South Africa and Canada) decided to maintain stable rates with the pound. The introduction of Imperial Preference I932 strengthened the economic bonds of the Commonwealth. At the same time or shortly thereafter, a number of non-British countries were drawn into a close association with sterling by two practical facts: while prices I93I-32 were comparatively stable sterling, they continued to fall terms of gold; and the volume of Britain's imports was relatively well maintained during the depression. By the time war broke out August I939, however, most of the non-British countries had decided to loosen their ties with a pound that had fallen from $4.68 to $4.03 during the preceding twelve months. During the I930's, the sterling bloc relied upon Britain to maintain exchange stability with the nonsterling currencies. Since sterling remained freely convertible until the war, though the London price of gold was no longer fixed, foreign exchange reserves held as sterling balances could be used to obtain dollar and other currencies at the holder's option. The World War II exchange control machinery, established first Britain September I939 and then other sterling countries, converted the sterling from a loose association of nations into a grouping with a formal structure of administrative regulations as well as some unwritten conventions. Control over foreign currency transactions, introduced for the first time the United Kingdom, provided that no payment could be made in favor of a person who is resident outside the sterling area without Treasury permission.2 *The conclusions of this paper represent the personal opinions of the author and do not reflect the views of the Federal Reserve Board. The writer is indebted to Mr. Arthur B. Hersey for suggestions. 'The important independent sterling countries are Australia, New Zealand, Eire, Pakistan, India, Ceylon, and, for transactions not settled directly with the nonsterling world, the Union of South Africa. IS.R. and 0. 1940, Nos. 1254 and I256, dated July I7, 1940. Under these regulations, the sterling was defined for the first time as an administrative entity as the