Knowledge that Transforms

This article discusses the theories of market crisis and the depression of balance sheets. The period of deflation should be a means of testing scientific opinions regarding the balance sheet. The replacement costs are approved on the basis of establishing price policies that is considered on two viewpoints, depending upon the objectives desired - as to the price calculations, and as to operating results in the accounts. In respect of price calculations, the majority of theoretical economists recognize the correctness of the theory today, even by those who consider the acquisition cost as the only true and real cost factor in the accounting computation of operating results. The advocate of the cost price theory keeps as an asset the 500 units of merchandise, the balance sheet value of which has no bearing on this question of price calculation. A full consideration of the causes of the depression would make it clear that the sting of the present crisis is in no way decreased by merely applying economist Fritz Schmidt's economic theory and the use of index numbers to show the present financial condition of businesses. The application of Schmidt's theory would of course improve the accounting procedure and the preparation of financial statements, and would help to clear up the managerial and economic condition of businesses when inventories are high and changes in capital structure take place suddenly.

Reviews the book "Financing the Consumer," by Evans Clark.

Reviews the book "Operating Results of Department and Specialty Stores in 1932," by Carl N. Schmalz.

The article focuses on the planning of field work in accounting. One of the acute problems facing accounting departments in collegiate schools of business is that of bridging the gap between the work in the classroom and the accountant's activities in business. The field work plan for those students who wish to enter public accounting has been developed to establish a means whereby the students may gain some valuable experience before graduation. The plan which is described in these pages is the one which has been in successful operation at the Ohio State University for about six years. Being located adjacent to several cities of considerable size, it has been possible for the university to secure the cooperation of a sufficient number of public accounting firms to make the venture a success. Participation in the field work plan on the part of the students is not compulsory. The success of the venture would be jeopardized if it were to be made so. Only the better students are privileged to take part in the field work and even in these cases, it is purely optional.

Reviews the book "Performance of Department Stores: 1932," by Edgar H. Gault.

Reviews the book "Beforderungsunternehmungen zur See," by Otto Reuther.

Reviews the book "War Debts and World Prosperity," by Harold G. Moulton and Leo Pasvolsky.

Reviews the book "Department Store Food Service," by Ina M. Hamlin and Arthur H. Winakor.

Reviews the book "Commercial Education in the High School," by Fredrick G. Nichols.

A second course in accountancy at the University of Illinois, in the United States, is offered to students who have had one semester of accounting fundamentals. These students are, for the most part, second semester freshmen. The text used is the second volume of "Elementary Accounting," which includes discussions and problems involving certain refinements of the first semester's work as well as many new subjects not touched upon previously. When this text was first introduced at the university several years ago it was used in the customary way. Text assignments were made and discussed, followed by the assignment and discussion of one or more disrelated problems on the particular material in hand. In such a course, the development could not be as logical as it had been in the most elementary course. In the first semester's work the student was continually forced to go over material which had been gone over earlier. Each step in the development of this first course depended very definitely upon all preceding steps.