Knowledge that Transforms

Reviews the book "Elementary Accounting," by Hiram T. Scovill.

Reviews the book "Auditing," by William H. Bell and John A. Powelson.

Abstract The article presents information about various activities taking place in several universities in the U.S. Ralph E. Badger, associate educator of finance, Brown University is leaving the department in the year 1926. A.F. Hinrichs has been appointed assistant scholar. Hinrichs has been associated with the research staff of the New York Housing Commission. Five new graduate teaching assistants have been appointed for the coming year 1927. They are scholars R.P. Doherty of Clark University, Ralph B. Tower of Boston University, Joseph Friedman of Brown, Cecil G. Garland of the University of Maine, Claude L. Stineford of Colby College. A number of changes in staff are being made in the year 1926 in University of California. Herman Helmer, lecturer in economics, W.T. McGrath, associate in economics, Rollin C. Hill, associate in economics, are leaving the department. New members of the staff are Arthur G. Coons, instructor in economics, Marion Stockwell, instructor in economics, John Clendenin, associate, Charles E. Leveson, assistant in economics and accounting.

Abstract The meteoric rise of the 1925 Florida real estate boom, with its great volume and complexity of real estate transactions, forced the practicing public accountants in the state to adopt many changes and variations in the methods usually employed in the accounting for such types of business activity. In the more stabilized or settled sections of the country the purchase or sale of real estate is a rare or extraordinary event in the history of the average individual or firm. Individual purchases or builds a home, which may require years of sacrifice or self-denial to pay for completely. The typical business concern acquires land only for immediate or future use as a business site. Land or buildings used for productive purposes do not change hands rapidly. Even in the case of the purchase of real estate for speculative purposes the turnover is not great, as rapid price increases making possible a quick profit through re-sale are not regularly experienced. In other words, no great number of real estate transactions need be recorded in books of account of the typical business concern in most sections. In most instances one land account and one building account suffice. The rules of debit and credit laid down for such accounts contemplate the use of the real estate solely for productive or investment purposes.

Abstract Accounting instructors at quiz and examination periods are placed on their mettle to prepare questions and problems, which may be answered by a student, who naturally works very slowly, within the time limit set for examinations. How many times we find the complaint that the quiz or examination is too long Certified Public Accountant (CPA) candidates likewise continually criticize the CPA examination questions as being too long. If students and candidates taking examinations were familiar with a satisfactory short method of solving problems, their chances of completing the work within the time limit described would in many cases be greatly increased. And examiners should be glad to encourage the use of such a method, assuming that it will serve to bring out all the essential features of the problems set. A question has been often raised by students as to the acceptability of this type of working papers by examiners. There is no doubt of the working papers being acceptable if the results and technique are correct.

Reviews the book "Analyzing Financial Statements," by Stephen Gilman.

Reviews the book "Auditing-An Introduction to Practice," by George E. Bennett.

Abstract As a group, teachers of accounting have contributed largely to the literature of accounting in the way of general treatises and of special studies on particular phases of the subject, but, in so far as published material may he taken as evidence, have given comparatively little attention to the problems which arise in the teaching of accounting. It is true that at least one institution gives a course in the college curriculum in accounting for six weeks during the summer and that a number of articles have been published on one phase or another of college courses. The material, however, is scanty at best, and the writer does riot know of any attempt to give a complete statement of the problems which confront the head of an accounting department in a collegiate school of business. The present paper, however, is not concerned especially with discussing the problems of the individual teacher, but it is designed to raise the question of the responsibilities of the head of a department of accounting in directing the instructional work of his department. The writer feels that the department head should take an active part in planning the courses, in encouraging and aiding his instructors to do their best work, and in providing conditions which will pave the way for effective teaching.

Abstract Under regulations prescribed by the Commissioner with the approval of the Secretary, a person who regularly sells or otherwise disposes of personal property on the installment plan may return as income there from in any taxable year that proportion of the installment payments actually received in that year which the total profit realized or to be realized when the payment is completed, bears to the total contract price. The solution of the problem is so simple that there would be no excuse to raise a discussion of the subject were it not for the published decisions of responsible revenue officers. Every beginner in accounting understands or should understand the use of suspense and deferred revenue accounts. Accordingly it is not difficult for him to appreciate that what is received in one accounting period may be income of a different period, just as a cost incurred in one period may be an expense in another.

Reviews the book "Accounting Systems--Their Design and Installation," by William Rodney Thompson.