Knowledge that Transforms

Reviews two books on monetary system. "The Downfall of the Gold Standard," by Gustav Cassel; "Is There Enough Gold?," by Charles O. Hardy.

Reviews the book "Operating Results of Department and Specialty Stores in 1935," by Carl N. Schmalz.

The article presents information on the proceedings of the twentieth annual convention held in New York. The American Institute of Accountants has asked for the cooperation of the American Association of University Instructors in Accounting in shaping a set of definitions of accounting terms. A special committee of the Institute had drawn up suggested definitions for over 1,000 terms and copies of these were furnished to this association through K. L. Kohier of the Institute's committee. Under a call for new business, R. B. Kester responded by directing the attention of the meeting to the opinion held by some that the activities of the association were not all that they should be. He expressed the opinion that the purposes and membership of the association should be broadened. He pointed out that such an organization as ours is the logical one to carry on organized research in the field of accounting theory, but is hindered to a very considerable degree by its name and limited membership. He told the members present of the American Accounting Association incorporated recently in the State of Illinois by a small group of members to engage in research in accounting. He expressed the opinion that there was hardly room for both the American Association of University Instructors in Accounting and the American Accounting Association, and asked for expressions of opinion of the members present as to what might be done about the matter.

Reviews the book "State Bank Failure in Michigan," by Robert G. Rodkey.

Reviews the book "National Economic Security," by Arthur B. Adams.

The financial statement of affairs, when used exhibits the assets of a bankrupt business classified according to the various claims the creditors have to the assets. The article discusses priority of taxes under Section 64 of the Bankruptcy Act. It says that the court shall order the trustee to pay all taxes legally due and owing by the bankrupt to the U.S. state, county, district, or municipality, in the order of priority as set forth in paragraph, provided, that no order shall be made for the payment of a tax assessed against real estate of a bankrupt in excess of the value of the interest of the bankrupt estate therein as determined by the court. Moreover, the debts will have priority, in advance of the payment of dividends to creditors, and will be paid in full out of bankrupt estates. The order of payment shall be cost of preserving the estate, filing fees, and expenses incurred in recovering transferred or concealed property, cost of administration, expense of opposing composition, wages earned within three months prior to bankruptcy, not to exceed $600 to each claimant, taxes payable and debts entitled to priority under state or federal law.

Reviews the book "Introduction to Principles of Accounting," by H.A. Finney.

Reviews the book "Retail Merchandise Accounting," by Hermon F. Bell.

Reviews two books on economic competition. "The Theory of Free Competition," by C.J. Ratzlaff; "The Decline of Competition," by Arthur R. Burns.

It is now generally recognized that the principles of accounting for the business of government cannot follow exactly the patterns of accounting for private business enterprises. As yet, the principles of governmental accounting, with standard classifications and terminology, have not been completely developed. Tremendous strides in that direction have been taken through the work of the National Committee on Municipal Accounting, which was organized in January 1934 in the U.S. This committee by its' work has stimulated the interest of accountants in the problems of municipal accounting, and it has produced definite recommendations, which are being accepted as fundamental and sound in principle. The purpose of this article is not to review the work done by the National Committee, but rather to present problems that as yet may not have been answered in the recommendations of the Committee. Specifically, this discussion will consider problems that may arise in presenting operating statements of municipalities, and in maintaining the accounts to obtain the operating statements, particularly as to items of income, revenue or receipts.