Knowledge that Transforms

Abstract Internship programs are so well established in some of the professions that it is probably unnecessary to devote any effort to the definition of terms. Very broadly, the author looks upon internship training in accounting as an arrangement, which enables the accounting student to achieve some degree of blending of experience with classroom training. This is in contrast with the more usual situation in which the classroom environment precedes an exposure to accounting practice. Accounting internships, in the sense used here, are not a recent development. For some time now, a number of schools have had established programs which permit, and even encourage, accounting majors to spend some time with an accounting firm before obtaining their college degrees. In some instances industrial firms are included in this type of arrangement. In fact, there are many variations of internship programs. In setting forth some of the prospective benefits obtainable from internship training in accounting, most of the discussion in the article refers to public accounting firms.

Abstract Reviews the book "Corporation Accounting," by William T. Sunley and William J. Carter.

Abstract Public accountants have had a growing conviction for some time that the Certified Public Accountant laws are in need of carefully considered modernization. Now, after extended consideration in committee, the American Institute of Accountants has published a form of bill that state societies will find useful in planning new legislation. If public accounting is to be widely and effectively recognized as a real profession, it has need of statutory recognition of just such aspects as restriction, discipline, education. This will not imply that legislation can create a profession out of an occupation. A profession creates itself. Technical competence comes from study and experience only. The need of the public for technical services arises more from the Complexities of business than out of legislation. And the most effective discipline is self-imposed. Public accountants have created high standards of discipline and have educated themselves to high professional competence. Public accounting in the U.S. has developed until it has come to serve an important public function.

Abstract The article presents information on the accounting exchange. Plans are being made that have much promise for bringing the American Institute of Accountants and the American Accounting Association into close cooperation for considering the educational problems of accountancy. Joint meetings are being planned to explore ways of finding and expressing ideas that may aid in the continued development of education for careers in accountancy. It is evident from the tentative agenda of topics for discussion, that plenty of useful work is waiting. Some of the topics for discussion are: (1) curricula for persons preparing for accountancy, (2) programs for the employment of college graduates best qualified for public accountancy, (3) desirable content for a pamphlet for the use of persons planning for careen in accounting. (4) preparation of an up-to-date bibliography of important books on accounting and its related fields of specialization, (5) policy to be followed by the Institute in meeting requests for recommendations as to schools in which to study accounting (6) programs of staff training and (7) plans for lectures by members of the Institute before student bodies.

Abstract The fallacy of the argument in favor of a rate base measured not by original cost but by subsequent purchase price should be apparent to anyone who understands the basic philosophy of the "prudent investment" standard. Under this standard, consumers of public utility service compensate investors for building the plants, not just for buying them from other persons who have already built them and who have already devoted them to the public service. Once these utility properties have been built and have been put into public service, investors who buy them later from their original owners are simply taking over these former owners' claims to a return on the capital devoted to the public service. The very nature of rate regulation precludes the adoption of the transfer price of a utility property, presented under the guise of actual cost to the present accounting company, as a proper measure of the rate base. This is so because public utility properties are necessarily bought and sold at prices reflecting the expectations of the buyers and sellers as to what the properties can be made to earn in the future.

Abstract Reviews the book "Industrial Management," by Asa S. Knowles and Robert D. Thomson.

Abstract Reviews the book "The Evaluation of Receivables and Inventories As an Integral Part of Credit Analysis," by Edward F. Gee.

Abstract Reviews the book "Mobilizing for Abundance," by Robert R. Nathan.

Abstract The article focuses on accounting for the dairy products industry. Twenty-five years ago the milk from a cow would arrive at the consumer's door step about twelve hours after milking time. Today this interval is much longer. The entrepreneur plays a much larger part in the dairy business than formerly. In fact, the processing distributor is almost a monopolist in the large metropolitan areas. It should be stated that accounting technique in the dairy industry has kept pace with technological advances and the transition from the horse and wagon to the paneled milk truck. In the heyday of the farmer-distributor no complicated accounting problems were encountered. Monthly receipts could be set off against comparatively few expense items. The farmer did not think in terms of depreciation, reserves for bad debts, or obsolescence. It can be truthfully said about accounting for the dairy industry that although the hours are long and the toil sometimes irksome, there is never a dull moment. Accounting for depreciation of equipment, machinery, and trucks likewise is a topic about which a separate article could be written.

Abstract Reviews the book "Here Comes Tomorrow," by A.W. Zelomek.