Knowledge that Transforms

Reviews the book "National Economic Security," by Arthur B. Adams.

The financial statement of affairs, when used exhibits the assets of a bankrupt business classified according to the various claims the creditors have to the assets. The article discusses priority of taxes under Section 64 of the Bankruptcy Act. It says that the court shall order the trustee to pay all taxes legally due and owing by the bankrupt to the U.S. state, county, district, or municipality, in the order of priority as set forth in paragraph, provided, that no order shall be made for the payment of a tax assessed against real estate of a bankrupt in excess of the value of the interest of the bankrupt estate therein as determined by the court. Moreover, the debts will have priority, in advance of the payment of dividends to creditors, and will be paid in full out of bankrupt estates. The order of payment shall be cost of preserving the estate, filing fees, and expenses incurred in recovering transferred or concealed property, cost of administration, expense of opposing composition, wages earned within three months prior to bankruptcy, not to exceed $600 to each claimant, taxes payable and debts entitled to priority under state or federal law.

Reviews the book "Introduction to Principles of Accounting," by H.A. Finney.

Reviews the book "Retail Merchandise Accounting," by Hermon F. Bell.

Reviews two books on economic competition. "The Theory of Free Competition," by C.J. Ratzlaff; "The Decline of Competition," by Arthur R. Burns.

It is now generally recognized that the principles of accounting for the business of government cannot follow exactly the patterns of accounting for private business enterprises. As yet, the principles of governmental accounting, with standard classifications and terminology, have not been completely developed. Tremendous strides in that direction have been taken through the work of the National Committee on Municipal Accounting, which was organized in January 1934 in the U.S. This committee by its' work has stimulated the interest of accountants in the problems of municipal accounting, and it has produced definite recommendations, which are being accepted as fundamental and sound in principle. The purpose of this article is not to review the work done by the National Committee, but rather to present problems that as yet may not have been answered in the recommendations of the Committee. Specifically, this discussion will consider problems that may arise in presenting operating statements of municipalities, and in maintaining the accounts to obtain the operating statements, particularly as to items of income, revenue or receipts.

Reviews the book "World Finance, 1914-1935," by Paul Einzig.

Reviews the book "Office Management," by George M. Darlington.

Reviews the book "Training for the Public Service," by Morris B. Lambie.

The article focuses on the accounting concepts involved in depreciation. Early reports show that provisions were made for fixed assets wearing out; and parliamentary debates also show that the joint-stock companies whose accounts were made up under the direction of auditors, were required to set aside a certain sum for the depreciation of the machinery. But the early Income Tax Acts did not provide for the depreciation of assets. When they did begin to take cognizance of this deduction it was through an allowance for repairs. England began her income tax, as such, by the Act of 1798, yet it was not until the act of the following year that even an allowance for repairs was made. The Act of 1806 made several changes in previous laws but the only one of interest was the elimination under Schedule A of the allowance for repairs to houses. That allowance was not reintroduced until 1894. The reason for the immediate abandonment, as stated in the Guide Book, was that it had been found to be inadequate and was demanded in many cases where the repairs were done by the tenants.