Knowledge that Transforms

Reviews the book "Want and Plenty," by Jacob H. Hollander.

Abstract Many students of accounting have investigated with thoroughness the question of whether or not accounting is included in the curricula of many liberal arts colleges, as well as the number and scope of courses usually offered. These investigations show that accounting has attained a position of no minor importance in such curricula and that liberal arts colleges are offering an increasing number of advanced as well as elementary courses, as of March 1933. Since we recognize that the study of accounting has taken its place by the side of the study of literature and the classics, a spirit of inquiry leads us to ask whether it is justified to call accounting a liberal arts subject and, if so, does the nature of the college necessitate a different approach or an adaptation of content in the accounting course. It is with these two questions that this article deals. The goal of the educator should certainly be to train the youth to live in the particular environment in which he finds himself. As environments change there is every reason why the field of his study, too, must change, for his social adjustment and his philosophy of life must turn upon his understanding and interpretation of his surroundings.

Reviews the book "The Banking Situation in the United States."

Abstract Accounting for no-par stock issues during the years 1930-1932, where changes have been made in the methods of stating capital stock valuations in those years, presents several most interesting contrasts with the period 1921-1929. During the past three years business conditions have been, for most corporations, just the reverse of the period prior to 1929, and these reversals in financial conditions are being rapidly reflected in the changing methods of accounting for no-par issues, capital surplus, earned surplus and related accounts, as of March 1933. In the period prior to 1929, the par-value security was rapidly giving way before the newer and so-called advantageous no-par security. Properties were being appraised, the added value was credited to some surplus or no-par stock account, and the sum total used as an excuse to make stock split-ups, carry stock values at the net worth without a differentiation between types or sources, and so on. Where in 1918-1929 corporation valuations went wild in one direction today undoubtedly they are going wild in the other.

Reviews the book "Quelques documents et quelques ouvrages français antérieurs au règne de Louis XIII, ayant trait à la morale, à la doctrine et à la comptabilité commerciales," by Albert Dupont.

Reviews the book "Modern Foreign Exchange," by Franklin Escher.

Reviews three books related to accounting. "Die Betriebswirtschaft," by H. Nicklisch; "Bilanz der Aktiengesellschaft," by R. Ruth and K. Schmaltz; "Wirtschaftsprüfung und Revisionswesen," by C.E. Poeschel.

Abstract In the June 1930 issue of the journal "The Accounting Review," there was published a series of short tests in accounting theory and practices, which had been developed at the University of Minnesota. Somewhat later, in March 1931, the journal carried a series of first-year examinations which had been given at the University of Illinois. In this article two sets of examination questions in first-year accounting are presented which have been developed and used at Cleveland College of Western Reserve University. These examination questions are again of the objective type, and they may be of interest in that they reveal further possibilities of using this type of test. Some of the questions included in the first set are, how should accounts ordinarily be arranged in the general ledger, what do the equities shown by the liability column of a balance sheet represent ordinarily, what is a balance sheet intended to show, what is meant by double entry, what does a debit mean in modern accounting and how should assets be listed in a balance sheet.

Reviews the book "Laissez Faire and After," by O. Fred Boucke.

Reviews the book "Cause and Control of the Business Cycle," by C.E. Harwood.