Knowledge that Transforms

Abstract The article focuses on balance-sheet form and classification in corporate reports. According to writers of accounting theory, there are two generally accepted forms for the presentation of the balance sheet, the account form and the report form. The account form presents the two sides as in a ledger account, with the assets on the left and the liabilities and net worth on the right side. The report form presents the liabilities and net worth immediately below the assets, in a narrative form. The account form is probably the more convenient of the two because, when it is properly set up, it brings into their proper relationships those sections of a balance sheet which are compared, such as current assets with current liabilities and fixed assets with fixed liabilities. There is little choice between the account and report forms of balance sheet set-up, if proper classification and sequence are observed, both forms then yielding exactly the same information. The length of the balance sheet, however, is a factor in the decision as to form, for it seems to be the accepted principle that it should all appear on one page, or two opposite pages, so that one has the entire statement before him.

Abstract Stock Exchange listing requirements in the United States, prior to 1934, were formulated by individual exchanges, each exchange acting on its own initiative and authority. This had been the practice of American stock exchanges since listings first began to be important in the 1860's. The London Stock Exchange followed the same practice and still decides such questions according to its own rules. In contrast are the Continental exchanges, such as the Paris Bourse and Berlin Bourse, which have had listing requirements, formulated by legislative bodies and imposed upon them for administration. The practice of having varying types of listing requirements on the part of different exchanges has led to abuses both in the enactment and in the administration of such requirements. These variations cannot be considered here but it is sufficient to state that such variations existed to an extent sufficient to justify legislative action. The legislation intended to correct these defects is included in the Securities Exchange Act of 1934. Two separate measures have been taken exchanges have been classified into two groups, exempted and registered and uniform listing requirements have been prescribed for each group.

Reviews the book "Money and Banking," by Howrace White.

Reviews the book "Money and Banking," by Frederick A. Bradford.

Reviews the book "Business Mathematics," by I.L. Miller.

Reviews the book "Federal Income Tax Handbook, 1935-1936," by Robert H. Montgomer.

Reviews the book "Problems in Auditing," by Arthur W. Hanson.

Reviews the book "The Distribution of Wealth. A Factual Survey Based Upon Federal Estate Tax Returns," by William Leonard Crum.

Abstract A little examination shows that there must be differences, else not so much difference would occur in the calculation of costs. On the face of it, nothing seems simpler, at least in theory, than knowing what is the cost of anything. Given the elements entering into a thing, its cost, financially expressed, is but the slim of those elements, each financially expressed. When we come to the practical test, as we all very well know, we find that the elements entering into the cost of a thing are not usually given, but have to be learned by analysis, often by almost impossibly fine spun reasoning, and, even in the cases in which the elements are given, a philosophical basis must be found for applying those elements to the case in hand. If an article is produced by a machine run by an operator, we cannot know what the article cost until we know what the operation of the machine cost. Learning that involves an investigation into a host of subsidiary costs like insurance, rent, taxes, fuel, engine-room wages, etc. and some of these elements of cost in but one of the final elements of cost involve in their turn several other analyses of cost into new elements which in their turn may involve others. Yet if we had all these given we should still need a basic theory of cost before we could arrive at our final figure unless, indeed, our case happens to be unusually simple.

Reviews the book "Cemetery Accounts," by Walter Mucklow.