Knowledge that Transforms

Abstract The article discusses about the teaching approaches to elementary accounting. Based on the results of the single measure of performance, which was the fifty-minute multiple-choice examination, it is possible to conclude that the different approaches to the teaching of the first course in accounting had no significant effect on the student's ability to perform on an examination of the type used in this article. Further, it may be concluded, at least in this instance, (1) that the use of television as a means of accommodating the increasing numbers of students in elementary accounting provides a teaching method that is at least as effective as the more conventional approach, (2) that there is no difference between the performance of (a) the students who received instruction for three periods per week, (b) those who received instruction one period per week with the instructional time equivalent to three periods per week, or (c) those who received instruction for four periods per week, and (3) that the use of the programmed learning materials as a substitute for certain portions of the text makes no significant difference in student performance.

Reviews the book "Management Controls: New Directions in Basic Research," edited by Charles P. Bonini, Robert K. Jaedicke and Harvey M. Wagner.

Abstract In this article, the author analyzes some of the unique accounting practices in foreign countries. A study of international accounting practices reveals an array of methods and procedures. Some nations still use the primitive accounting techniques which most industrialized nations considered outmoded fifty years ago; on the other hand, a number of nations now employ the most advanced accounting methods, supported by up-to-date laws. International accounting is important because it gives us the opportunity to study historical accounting methods supported. More than that, however, one can learn from the failures and successes of nations that have applied accounting methods different from ours to solve many of the same problems now facing people. The relative merits of flexibility as compared with uniformity of accounting principles, procedures and methods have been under much discussion in the United States. Although there is no space here for detailed investigation, it is interesting to note that there are still three nations in which complete or partial uniformity was or is still required by law.

Reviews the book "Corporate Reporting for the Professional Investor: What the Financial Analyst Wants to Know," by Corliss D. Anderson.

Reviews the book "Accounting for Management Analysis," by David H. Li.

Abstract This article focuses on the accounting method used in a gross profit computation. In order to remove the effect of sales price fluctuations, the variable rate used is based on the 1961 sales price. However, the 1962 rate is more indicative of present and future cost prices. Thus, either the 60% rate or the 54.5% rate, which is the 60% rate applied to 1961 sales dollars, appears to be the acceptable choice.

Reviews the book "Management Accounting: Text and Cases," 3rd ed., by Robert N. Anthony.

Abstract In this article, the author deals with the problem of computing the present value short cuts of a series of estimated future inflows at a given rate of discount. The concept of present value has permeated most areas of business decision-making. However, when considering this factor, the businessman is faced with the problem of numerous mathematical computations. Granted that they are mechanical in nature, nevertheless, until these computations are completed, the influence of the present value concept cannot be determined and related decisions cannot be made. The services of a modern computer are particularly desirable when the calculations are extremely numerous and highly complex, and when extreme accuracy is required. However, this offers little comfort to the business executive at his desk, the investor in his home, or the professor or student in the classroom who, for one reason or another, does not have access to a computer and who may require only reasonable accuracy in solving problems of valuation.

Reviews the book "Accounting: An Analysis of Its Problems," vol. 2, by Maurice Moonitz and Louis H. Jordan.

Reviews the book "Standards of Accounting and Financial Reporting for Voluntary Health and Welfare Organizations."