Knowledge that Transforms

Abstract Women in any field or profession have problems and responsibilities that are peculiarly their own. This is especially true in accounting where women form a smaller minority group than in any of the other leading professions or executive groups. To fill the need for work that could not be expected of existing accounting organizations, and was not their responsibility, the American Woman's Society of Certified Public Accounts was organized to advance the professional interest of women certified public accountants. Though of necessity small in membership, it renders a unique service to the profession and to business and industry, as well as to women. To provide an effective medium, the American Woman's Society of Certified Public Accountants organized an affiliate, the American Society of Women Accountants, which through different classifications, provides membership for women who are actively engaged in any phase of accounting, who are instructors or students of accounts or who otherwise have a substantial interest in accounting. Through well-organized and regularly conducted monthly meetings, local chapters in larger cities of the U.S. offer technical and educational programs that are of material aid in improving efficiency of its members, good fellowship and exchange of ideas among women with mutual interests.

Abstract Accounting as it is commonly understood is the art of recording, classifying, summarizing and interpreting transactions and events which are, in part at least, of a financial character. The roles which the art of accounting plays in taxation are both varied and important. Only the most elementary estimates of revenue needs can be made unless they are supported by comprehensive accounting classifications of expenditures by the taxing unit for a period of prior years together with similar classifications of the estimates of its current needs. In controlling and reporting upon the collection and disposition of public revenues, accounting is, of course, a commonplace. But it is in the field of income taxation, the revenues from which play such a dominant part in the financial programs of the Federal Government and of many of the states, that the role of accounting in the taxing process attains its greatest importance. Without accounting, the administration of an income-tax program would be impossible.

Abstract During the wartime years and now during the reconversion period a number of arguments have been advanced that seem strange to accountants and to businessmen. Like the unicorn, deferred maintenance is sometimes said to exist only in the minds of highly imaginative individuals-individuals, it might be added, who are acutely motivated by a profit incentive. While the conclusion stated in this bald fashion without qualification is obviously extreme, businessmen have found themselves hard pressed to find convincing arguments. It is the purpose of this paper to examine the conditions necessary for the existence of deferred maintenance, to investigate the propriety of taking a deduction from income to cover this item in advance of the actual expenditure, and to offer criticisms of some prevailing methods of measuring such deductions. In the course of this work it is necessary to review the relationship of maintenance to methods of depreciation apportionment. From the economic viewpoint, the accountant by making periodic reductions of income for depreciation is attempting, perhaps crudely; to provide for capital consumption or utilization.

Abstract Reviews the book "Some Specialized Phases of Accounting Practice," by Mvron M. Strain and Floyd P. Karg.

Abstract Reviews the book "Financial Administration of Municipal Utilities," by Irving Tenner.

Abstract Reviews the book "Studies in Income and Wealth," Vol.8.

Abstract The article presents information about professional examinations related to accounting. The following problems were presented as the second half of the November 1946, Certified Public Accountants examination prepared by the Board of Examiners of the American Institute of Accountants. The candidates were required to solve both problems in four and a half hours. The weights assigned were: problem 1, 35 points; problem 2, 15 points. A suggested time schedule was given which was as follows: Problem 1: 120 minutes and Problem 2: 60 minutes. Problem No. 1 was as follows: One of the problems were regarding a retail store which was destroyed by fire on March 20, 1946. Only few items were salvaged.

Abstract In this article, fundamental propositions concerning the functions of accounting in respect to cost, revenue realization, income, and capital are set forth briefly. These are followed by explanations and applications the list of which could be considerably expanded. The primary effort has been to bring out those points which are of the broadest significance or which have been the object of recent attention. In the corporate field the most important use of accounting lies in the preparation of statements of financial position and of operating results. So many vital decisions of business and government depend on the interpretation of such statements that they have come to be of prime economic and social significance. The subject may be approached by considering the uncertainties of corporate accounting practice which sometimes vitiate comparisons of published financial statements of different corporate enterprises, and even comparisons of the financial statements of the same enterprise for successive years. In some instances business managements and accountants have permitted themselves such freedom of action that published statements have been difficult of interpretation without extensive supplemental information. To avoid these difficulties every corporate statement should be based on accounting principles which are sufficiently uniform, objective, and well understood to justify opinions as to the condition and progress of the business enterprise behind it.

Abstract Beginning instructors are usually assigned to the elementary course in order to obtain their experience. The large volume of students is also found at this level. The intermediate course presents a somewhat similar problem, although it is less acute. Generally, the courses above the intermediate level are in the hands of experienced instructors. The writer believes that all the ability and skills an instructor can command are required at the first level. If the student fails to learn the fundamentals well, difficulties in more advanced courses may be due to the structural weakness of the introductory background rather than to the advanced course per se. The problems of the beginning instructor are increased not only by the range of interest and ability to grasp the subject but also by sheer numbers. In advanced courses, however, there is the advantage of selection. The suggestions offered here are primarily to help the beginner. They are not intended to be complete. Also they are confined to the elementary course, although they may be applied also to the more advanced classes.

Abstract The verbs used in the literature of auditing tell what auditors do, and therefore take on technical significance. An analytical study of word usage, by detecting differing shades of word meaning, could therefore be expected to direct attention to differing types of audit action. In a sample of auditing literature amounting to approximately 1,720 pages, about 75 verbs were used 20 times or more for a total of over 5,000 uses. About 400 other verbs were used less than 20 times each for a total of 1,500 uses. The most notable feature of this quantitative analysis is the fact that within a large vocabulary of audit verbs there is a high concentration upon a few words. Seventeen verbs used 30 to 99 times are: note, accept, scrutinize, reconcile, disclose, count, give, substantiate, see, account for, report, request, state, confirm, analyze, satisfy, audit. Fifteen verbs used 30 to 49 times are: provide, insist, study, prove, foot, establish, discover, include, trace, adjust, show, detect, value, take, make.