Knowledge that Transforms

Abstract Reviews the book "Insurance Agency Accounting," by Ernest Lawrenson.

Abstract Many questions arise related to courses to be taken by accounting students if they plan to enter industrial accounting. At the University of Akron, Ohio, the Akron chapter of the National Association of Cost Accountants (NACA) formed an educational guidance committee to help students. The University of Akron sought the assistance of the Akron chapter for the purpose of improving its curriculum and aiding the students who would be working for employers represented by the wide membership of NACA. The University turned to the Akron chapter because it includes accountants engaged in a wide range of activities, from the one-man accounting office to the controllers of some of America's largest factories. All types of educational backgrounds, from those who studied their accounting by correspondence to graduates of colleges in every region of the country are represented in its membership. Conditions change, jobs change, so the educator believes that a broad, firm foundation enables a student to progress vocationally much farther in the long run, and in addition, make him a whole, well-rounded person rather than a narrow technician.

Abstract In the real world of business affairs, however, the conception of the controller as a member of the management team, contributing to and concerned with the problems of overall administration and effective control, has grown. And it is becoming apparent that the subject of controllership (as apart from the professional aspects of public accounting) is not only relevant to, but important for collegiate business schools. Courses under the title of controllership are growing in number, and there are now at least thirty schools that offer a course in this subject. Part of this is attributable to the appearance of textbooks and other teaching materials emphasizing the viewpoint and the content of the controllership notion, but the underlying factor is the need for education of a different sort than is provided by professional specialization in accounting. On the whole, it is a fairly obvious fact that many of the students who "major" in accounting actually find their ultimate careers outside the field of public accounting.

Abstract Following the general price inflation rafter World War I there was much discussion about accounting errors in the measurement of business profit when conventional or legal dollars were used in reporting historical costs. This discussion reached a climax in 1936 with the appearance of Sweeney's Stabilized Accounting. Now that another wave of general price increase has swept over the country, the discussion has been resumed. The valid objections to the application of index numbers to accounting data for purposes of reporting profits and losses are few. Unless the general price level remains constant, better index numbers should be constructed. An index designed to measure the change in general purchasing power of the dollar is superior for this purpose to any more special index. The index ideally might be one based on all commodities, or it might be one based on the prices of consumer's goods. The use of index numbers gives recognition to the economic realities of a business situation in place of mere legal formality where legal dollars are assumed to have a constant purchasing power.

Abstract The third attempt of a committee of the American Accounting Association to prepare a systematic statement of accounting concepts and standards deserves much praise and those who are responsible for the drafting of the material should feel that it has made a real contribution. Most of the propositions can be accepted as valid and as contributing toward more effective corporate financial statements. The organization of the material has been improved, particularly by grouping separately the standards to be applied in the preparation of financial statements so that they can be distinguished from the more basic concepts of asset valuation, income determination and the classification and measurement of the equities. It is hoped, however, that an early revision will be published which will incorporate the changes, few though they may be, which seem to have general support. Also, it would be helpful and interesting if the policy were adopted of presenting minority reports. Surely the statement as it stands must be the result of many compromises of differences of opinion. It is doubtful if the time has arrived when one can subscribe without dissent and exception to as many propositions as appear in this statement.

Abstract The article presents a professional question paper for department for students of Accounting. The problems were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the May, 1950 C.P.A. Examination in accounting practice. The candidates were required to solve problems 1 and 2 and either problem 3 or problem 4. The time allowed was four and a half hours.

Abstract The article presents various developments related to professional accounting and accountants in the U.S. Edward J. Kelley has been appointed to succeed the late Myron M. Strain as Dean of the School of Accountancy. Dean Kelley practiced as a Certified Public Accountant in San Jose prior to 1936, during which time and until 1941, he was Dean of the College of Business Administration of Santa Clara University. He has been serving until this appointment as Controller of Hastings Clothing Company in San Francisco. Howard W. Wright has been granted a leave of absence for the academic year 1950-51. Wright has been appointed Assistant to the Controller of Economic Cooperation Administration. The University of Tulsa, together with seven other sponsoring agencies, was host in April to the fourth annual Conference of Accountants. The two-day program was devoted to the general topic "Humanizing Accounts and Accountants." Noted speakers participated from all parts of the United States and representing many specialties related to accounting.

Abstract Reviews the book "Accounting Techniques Used in Published Corporate Annual Reports."

Abstract Reviews the book "Guidebook to California Taxes with Special Emphasis on Relationship to Federal Taxes," by Russell S. Bock.

Abstract Reviews the book "The ABC of the Federal Reserve System," 12ed., by Edwin W. Kemmerer and Donald L. Kemmerer.