Knowledge that Transforms

Abstract The article focuses on computer-assisted instruction (CAI) for elementary accounting. CAI materials for a two-semester elementary accounting course are being developed at the University of Illinois at Urbana-Champaign. The intent of the present paper is to report the progress of CAI, which has potential for great effectiveness in accounting education in anticipation of avoiding unnecessary duplication of costly effort in this area and to present results of a controlled experiment conducted during the Fall 1973 semester using the completed materials developed for the first semester, accounting principles course. One of the major advantages of materials developed in this project is their adaptability to improvement. This paper presents a discussion of objectives of the project, CAI system used, the approach taken and the experience to date in achievement of objectives. Objectives of the project, started in June 1972, include improvement of instruction in the elementary accounting sequence at the University of Illinois.

Abstract This article cites a study which assesses the effect of the separation of ownership from control on accounting policy decisions. Many theories of management behavior in manager firms consistently argue that a gradually rising performance measure is in management's best interest. This study is an empirical investigation of the accounting policy decisions which were made by 110 firms during the 9-year period between 1954-1962. The firms considered for inclusion in this study were listed on the New York Stock Exchange in December 1954, as reported in the U.S. Senate Staff Report. Fifty-seven managers and fifty-three owner firms were selected randomly from this population for inclusion in this study. In this study, control refers to the power to direct the affairs of the corporation or to determine the broad policies guiding the corporation. Results of this study extend the research previously reported in the accounting literature by empirically drawing the distinction between owner-controlled firms and manager-controlled firms for the first time. Some of the results lend empirical evidence to the importance of distinguishing between owner and manager control.