Knowledge that Transforms

Abstract Reviews the book "Intermediate Accounting," by Loren A. Nikolai, Richard G. Schroeder, John D. Bazley and Isaac N. Reynolds.

Abstract ABSTRACT: In this paper, a single graphic presentation is used to identify and demonstrate the interrelationships among the alternatives and activities relevant to the business combination transaction and to post-combination operations and financial statements. Also, generalized formats for recording combination transactions are presented and discussed. Finally, the paper discusses the ways in which the instructor can use the graphic presentation to make the business combination process more understandable to students.

Abstract Reviews the book "Current Accounting Law and Practice: 1980," by Robert Willott.

Abstract Reviews the book "Accounting Principles for Management," 3rd ed., by Robert E. Seiler and Frank Collins.

Abstract Reviews the book "Control Without Bureaucracy," by David Mitchell.

Abstract ABSTRACT: This paper uses a simple example to isolate the underlying capital maintenance concepts that are associated with historical cost income and four widely discussed inflation accounting alternatives, The approach illustrates that each of these concepts conforms to Hicks' classical income definition and thus demonstrates why discussions of "true" inflation-adjusted income are oversimplified.

Abstract The article presents the reply of the author to the article by D.R. Finley, assistant professor of accounting and Woody M. Liao, associate professor of accounting, published in the April 1981 issue of the journal "The Accounting Review," on author's general decision model. According to the author, the decision criteria developed by Finley and Liao for determining a product's marketability under normally distributed demand is a valid and smooth integration of equations derived in author's paper. Their decision criterion calls for a positive expected profit as a precondition for marketing a product. Such an approach to the break-even analysis under uncertainty has several major limitations. The first major limitation is that their decision criterion failed to take into account the decision maker's attitude toward risk-taking. The second major limitation of the choice criterion proposed by Finley and Liao is that it is a very pessimistic and highly inflexible approach. Such a negative and rigid view of uncertainty, will certainly be detrimental to the expansion and development of any business endeavors.

Abstract Reviews the book "Perspectives on Research--1980 Beyer Consortium," edited by Raghavan D. Nair and Thomas H. Williams.

Abstract Reviews the book "The Future of Accounting and Auditing Standards," by Edward Stamp.

Abstract Reviews the book "Accounting for Multinational Enterprises," edited by Dhia D. AlHashim and James W. Robertson.