Knowledge that Transforms

Abstract The article presents reply of authors on comments by J. Pratt, in the paper titled "The Effects of Personality on a Subject's Information Processing: A Comment," published in the July 1980 issue of the journal "The Accounting Review." According to authors, the major contribution of Pratt's comment is to focus attention, yet again, on the need to understand better the effect of task, data presentation mode and users' interaction with sets of variables, which are useful areas for future research. Pratt has highlighted some interesting conjectures which merit further research. Authors of the present article points out that Pratt's initial concern is over the proper definition of personality, particularly with reference to the need to include or exclude cognitive style from that construct. While Pratt recognizes the existence of multiple theories of personality, he uncritically accepts the one most consistent with his goal of separating cognitive style research from personality. Authors of the present article add that this is a questionable practice. Even elementary psychology texts recognize psychology's failure to deal satisfactorily with this term.

Abstract The article presents a list of several publications by accounting firms. Publications that are listed include "Audit Committees," published by Deloitte Haskins & Sells, "Cost of Government Regulation Study for the Business Roundtable," from Arthur Andersen & Co. and "Guide to Accounting Controls," published by Price Waterhouse & Co.

Abstract The article highlights accounting firms' publications, which may be of interest to academics. According to the author, in recent years, the largest public accounting firms have increased the quantity and quality of their accounting publications. Single copies are usually available upon request from the nearest office. Names of some publications by accounting firms are "Controlling Assets and Transactions," "Evaluating Internal Control" and "Worldwide Statutory Audit and Reporting Requirements," published by Ernst & Whinney and "Financial Reporting and Changing Prices," published by Deloitte Haskins & Sells. The book "Controlling Assets and Transactions" presents Touche Ross Accounting Control Evaluation program. The program recognizes that business activities can be divided into two basic parts, those that result in the flow of funds in and out of the entity and those that result in the flow of assets and information within the organization. The former is divided into three transaction cycles, sales, billings, receivables and collections cycle, purchases, payables and payments cycle and wages and salaries cycle.

Abstract ABSTRACT: This study empirically investigates the relationship of capital leases to the market risk of lessees. The capitalized value of leases, as reported to the SEC under ASR-147, was used to measure the value of lease obligations. A multiple regression model was tested with market risk (β) as the dependent variable and an, accounting β, debt-to-equity ratio and leases-to-equity ratio as independent variables. Initial tests found the lease variable was not significantly associated with market risk. However, the leverage and lease variables were highly correlated. Two tests were developed to overcome the multicollinearity problem. Both tests found that when the multicollinearity was controlled, leases made a significant contribution to the association tests on market risk.

Abstract ABSTRACT: This note reports on one method currently available to insurance companies and those with insurance subsidiaries for "managing earnings," illustrates it for Sears Roebuck and Co., and concludes that Sears' management has not taken advantage of all of the income-smoothing possibilities provided by the generally accepted accounting principles for insurance companies.

Abstract Reviews the book "Maintenance Planning and Control," by James H. Bullock.

Abstract The article reviews the book "Controller's Handbook," edited by Sam R. Goodman and James S. Reece.

Abstract Reviews the book "Predictability of Corporate Failure," by R.A.I. van Frederikslust.

Abstract Reviews the book "Programmed Guide to Tax Research," by James E. Parker.

Abstract The article reviews the book "An Introduction to Corporate Accounting Standards," by W. A. Paton and A. C. Littleton.