Knowledge that Transforms

Abstract Reviews the book "Theory of Accounts," by Arthur H. Rosenkampff and William Wider.

Abstract Reviews the book "Guide for the Study of American Social Problems."

Abstract Accounting is such a field, and, like other fields of knowledge and of work, it stands to benefit from a continuing exchange of views. The range of the exchange need not be confined to the results of extensive research, or to the analysis and reporting of complex experience. Exchange of opinions can also make a contribution. What one thinks at the moment need not commit him irrevocably to a certain position, nor is his idea necessarily put forward with the purpose of securing converts to the view presented. A good perspective on professional attributes would be helpful, for example, whenever the problem to be faced had to do with setting and maintaining standards of admission to the profession and standards of professional practice after admission. Good perspective would also be useful whenever organization activities or educational programs are under consideration. When and if the profession might be under fire of criticism, perspective would be indispensable. A number of tests could perhaps be devised and tried on experienced accountants in an experimental way. Those tests that seemed most revealing could then be subjected to further observation by using them experimentally with young men recently accepted for professional work and still under training and scrutiny, and by using them experimentally upon college students who wish to major in accountancy and may later be further observed in class and office.

Abstract Banks of deposit, managed by local moneychangers, existed in Venice, Florence, Genoa, Barcelona, Bruges, and probably in Antwerp and Paris. After 1400, there was a municipal bank in Barcelona, but the private banks continued to exist beside the new institution, and attempts to drive them out of business were un-successful. In Valencia also, a municipal bank was created but it failed to prosper and was dissolved after a few years. As a result of the use of oral orders in lieu of written checks, banking practices and accounting procedure were quite different from what they are today. Making payments by assignment involved going in person to the bank. The banker wrote the transfer in his journal at the customer's dictation, so to speak. In principle, law, but this rule required the presence of both the assignor and the assignee was often disregarded in practice. Bank transfers were frequently made on the strength of an order given by the debtor alone, without the creditor being present. According to a case decided by the Bruges municipal court, payment by book transfer was not complete, however, unless the creditor declared himself satisfied with this mode of settlement.

Abstract Reviews the book "Branch Banking, Its Historical and Theoretical Position in America and Abroad," by John M. Chapman and Ray B. Westerfield.

Abstract This article presents problems which were presented by the Board of Examiners of the American Institute of Certified Public Accountants as the first half of the November, 1942, certified public accountants' examination in accounting theory and practice.

Abstract Reviews the book "Statistical Cost Functions of a Hosiery Mill," by Joel Dean.

Abstract This article focuses on the nature of financial accounting process. Accounting has been defined by a committee of the American Institute of Accountants as "the art of recording, classifying and summarizing, in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof." It is an art, not a science, but an art of wide and varied usefulness. The purely recording function of accounting, though indispensable, concerns only technicians. Its analytical and interpretive functions are of two kinds. One type of analysis is intended to afford aid to management in the conduct of business and is of interest mainly to executives. The other type leads to the presentation of statements relating to the financial position and results of operations of a business for the guidance of directors, stockholders, credit grantors, and others. This process of financial accounting, therefore, possesses a wide importance for persons who are neither accountants nor executives.

Abstract Reviews the book "Introductory Accounting," by Donald D. Kennedy, George R. Esterly and William J. Von Minden.

Abstract In this article the author presents accounting profits as an institution. According to the author the numerical estimates of profit become a business necessity with the expansion of the market and a corresponding increase in uncertainty. Such estimates are provided by accounting which attempts a quantitative clarification of the results of the utilization of productive forces. From the relatively simple record-keeping of an earlier period there have emerged the now highly complex, specialized functions of purchasing and marketing. Increasing problems also give rise to the expansion of interests concerned with personnel, managerial techniques, publicity, and other features. With the passage of time, increasing accounting requirements and techniques have been accompanied by the development of a body of highly involved doctrine. Public control is a further factor contributing to this result. Meanwhile, there is an ever-growing attempt on the part of accountants to arrive at a body of principles or standards which can be generally accented. In these tendencies the place of accounting profits as an institution manifests itself.