Knowledge that Transforms

Abstract This comment demonstrates as erroneous the method Ferrara proposed for computing the mean, standard deviation, and alternative probability intervals of ROI based on normality assumptions. To develop alternative probability intervals at different levels of significance, it is necessary to recompute the Geary transformation after substituting appropriate standard normal values in the equation. To estimate the mean and standard deviation of ROI, the use of Taylor series approximations provides a justifiable methodology.

Abstract The article presents author's reply to comments by K.H. Chan, associate professor of accounting at York University,Toronto, Ontario; S.F. Lam, assistant professor of computer science and Roger Tang, assistant professor of accounting, both at McGill University, Montreal, Canada, on author's research paper on probabilistic approaches to return on investment and residual income. According to the author, the main thrust of his research paper was that the high-medium-low technique is more viable in the real world than the credit it gets. The use of probabilistic estimating procedures plus non-availability of reliable data, difficulties of statistical manipulations for accountants and others and the costliness of some alternative techniques lead to this conclusion. Comments not only ignores the basic thrust but concentrates soley on an illuatration. Nothing is more simplistic than the rate of investment ratio of net income and investment where both are assumed to be normal or approximately normal.

Abstract ABSTRACT: Few of the reported studies of innovative techniques for accounting education have found significant improvements in students' performance and attitude. This paper reports on an experimental study in an elementary managerial accounting class using an innovative teaching methodology, The Personalized System of Instruction (PSI). The PSI teaching method was selected for testing because studies in other academic disciplines had found that PSI classes performed better and had better attitudes than traditional lecture/discussion classes. The present study found significantly better performance and attitudes in PSI taught sections of an elementary managerial accounting class. The study also found a higher course drop-out rate for the PSI taught sections.

Abstract Reviews the book "Accounting Information Systems and Business Organizations," 2nd ed, by Barry E. Cushing.

Abstract Reviews the book "A New Look at Accounting for Pension Costs," by W.D. Hall and D.L. Landsittel.

Abstract Reviews the book "Accounting Information Systems," by Robert G. Murdick, Thomas C. Fuller, Joel E. Ross and Frank J. Winner-Mark.

Abstract ABSTRACT: This survey reports on the levels of understanding and acceptance of the efficient markets hypothesis (EM H) in each of its three forms and on the extent of awareness of the accounting implications of the semi-strong and strong forms of the EMH. Selected accounting-information preparers and users were contacted and a 79 percent analyzable response rate obtained. Generally, low levels of understanding of the EMH and its accounting implications as well as extremely low levels of EMH acceptance were found. A majority of respondents indicated that they thought fundamental analysis was useful in out-performing the market averages over the long-term. Audited financial statements and quarterly reports were thought very useful for this purpose, especially by chartered financial analysts (CFAs). Twice as many CFAs as partners of Big Eight firms thought that accounting-determined risk measures were highly associated with market-determined risk measures. As a group, only accounting academicians thought inside information was useful in outperforming market averages.

Abstract Reviews the book "Ethics in the Accounting Profession," edited by Stephen E. Loeb.

Abstract Reviews the book "Financial Accounting: Basic Concepts," 3rd ed., by Earl A. Spiller.

Abstract Reviews the book "Accounting Education and the Third World."