Knowledge that Transforms

Reviews the book "Confederate Finance," by Richard Cecil Todd.

Abstract The article discusses the ways of viewing in perspective, the practice of accountancy. The practice of accountancy can mean far more than a mere livelihood if, as far as possible, all tendencies to take a dull, prosaic, jaundiced slant on one's work are discarded and instead meaning and inspiration in professional activities are looked for. To fulfil this goal the written word in accountancy should be clearly and interestingly conveyed, striving always to make communications compact models of useful intelligence. Varied reading should be done, thus drawing on the thinking of men of other times and places, and thereby enlarging one's own horizons and ventilating minds. Teaching, in the broadest sense, should mean creating true illumination by explaining principles. One should observe more alertly and broadly explore his professional environment, and then apply this chosen science, so that all may better adapt themselves to their limitations and likewise to their highest potentialities.

Abstract The article focuses on the requirement of accountants within the Atomic Energy Commission. The commission's Junior Management Development Program employs ten persons each year to help provide a flow of trained people. One of the qualifying fields is business administration. These people are needed because atomic energy just in the past few years has become big business, and one of the fastest growing industries in the United States. The training program is aimed at the graduates to be sound on technical points, such as inventory pricing, depreciation, testing of records for audit purposes, bank reconciliation, and all the others. The accountant, the auditor, the budget analyst, must not only have sound ideas and thoughts, but he must be able to present these thoughts so that they are understood, are convincing, and secure a desired response. The training and examination methodology of the program is discussed in the article. The author suggests a need for improvement in both written and oral presentations.

Abstract The article presents comparative rather than absolute limitations, a problem that faces accounting, and deals with purchasing power measurements in accounting. In recent times, two basic economic fears, namely, inflation and deflation have been developed which involve concern about the purchasing power of the dollar, and its lack of monetary stability or shifting of the price level. The general price index, or any one of its broad subdivisions, is admittedly no more than a very general indication of what "package" of goods and services a given quantity of money will buy under certain conditions of time and place. The price index blends indiscriminately the effect of monetary factors with such factors as output, technology, wage bargaining, etc. The problem of inflation may be delimited and treated as involving determination of the cost of goods delivered to customers, determination of the cost of utilization of long-term assets, and measurement for administrative and other purposes of return on capital investment.

Abstract The article presents the report of the president of the American Accounting Association for the year closing December 31, 1954. According to the report, The Accounting Review periodical has increased gradually in size during the past five years to about 800 pages annually. Manuscripts have been coming in nicely this past year. Good progress has been made during the past year on the research project, headed by Professor Ralph C. Jones of Yale University, and concerned with the effects of price level changes on financial statements. The growing importance of the association, and the increasing importance placed on accounting education by associations of practitioners, are attested to by the many requests for official representations at meetings of other accounting organizations, both in the United States and abroad. Plans were initiated in 1953 for the Association of University Teachers of Accounting in England and the American Accounting Association to sponsor jointly the publication of a volume of readings in the history of accounting.

Reviews the book "Long Term Leases, Problems of Taxation, Finance, and Accounting," by Albert H. Cohen.

Reviews the book "1955 Federal Tax Course--Students Edition."

Abstract The article presents the report on examination of records of the American Accounting Association by the Executive Committee. According to the report, the committee has examined the consolidated balance sheet of the association as of December 31, 1954 and the related statements of income and net worth of the General Fund and Life Membership Fund for the year then ended. The examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as considered necessary in the circumstances. In the committee's opinion, the accompanying consolidated balance sheet and related statements of income and net worth present fairly the financial position of the American Accounting Association at December 31, 1954 and the results of its operations for the year then ended, in conformity with generally accepted principles of accounting applied on a basis consistent with that of the preceding year.

Abstract The article discusses generally acceptable objectives formulated to guide the development of course content, instruction, and curricula for the undergraduate program in accounting. These can be checked for validity by applying the test of reasonableness. This is a widely used accounting test, particularly in cost distributions. This same test is used to evaluate the pronouncements of the Research Committees of the American Institute of Accountants. The Standards Rating Committee has proposed a four-year program, while many hold the viewpoint that either five-year courses, or four years of undergraduate work, and one year of graduate work, are necessary for adequate training. The committee apparently favors a five-year program, but at the same time recognizes the inherent difficulty of such at this time. Specialization is necessary but not at the undergraduate level. A broad foundation will enable the student to become a better specialist. The failure to provide a means which will enable the student to integrate the many ideas received in diverse courses is another deficiency.

Abstract The need for regular formalized staff training classes as a part of employee training has been fairly widely accepted by public accounting practitioners. In the article, the author presents his experience related to a large scale audit organization in the conduct of short intensive refresher courses for auditors at the in-charge level. Testing of capabilities of auditors in the application of theory to practice have been tabulated and preliminary inferences drawn from these results. The representative in-charge auditor carried into the courses a strong emphasis on voluminous vouching and checking as the prime means of obtaining adequate audit evidence. There was a marked resistance to change by a significant portion of the men even upon demonstration of the patent unsoundness of some of their ideas about audit objectives. This intransigence required early and intensive diversification of teaching techniques. Statistical measurements of progression superficially support the belief that early application of flexible, well-thought-out plans of instruction can aid in achieving significant improvement even as early as the second day of training.