Knowledge that Transforms

This article focuses on the examination in theory of accounts of the Uniform Certified Public Accountants. There were two groups of question. In one of the question one is to indicate the nature of the account or accounts to he debited when recording each transaction using tile preferred accounting treatment by placing an "X" in the proper column on the answer sheet provided. Prepayments should be recorded in balance sheet accounts. Disregard income tax considerations unless instructed otherwise. The question includes facts like, the Talbot Co. spent $8,600 during the year for experimental purposes in connection with the development of its product. This is approximately the same amount that the company has been spending for this purpose annually for many years. The Placey Co. recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books. Razing costs of $1,200 were incurred in removing the smaller building, which had an appraised value at acquisition of $6,200, in order to make room for new construction.

Reviews the book "Personal Deductions in the Federal Income Tax," by C. Harry Kahn.

The article presents various news related to meetings that were held in different parts of the U.S. to discuss issues related to Accounting. The Committee on Fellowship Program is pleased to announce that nine fellowships of $1,000 each have been awarded for the academic year 196 1-1962. The purpose of these awards is to assist teachers of accounting to complete their doctoral studies. The Southwestern Region of the American Accounting Association met in joint session with the Accounting Section of the Southwestern Social Science Association at Dallas, Texas, on March 31 and April 1, 1961. On April 24 and 25, the Agricultural and Mechanical College of Texas was host to its Fourteenth Annual Accounting conference. Changing Dimensions of Financial Management was the central theme of a three-day conference held during the period of May 18-20, 1961 in Washington, by the Federal Government Accountants Association. Top financial administrators of the federal government discussed such subjects as managerial auditing, statistical sampling, and improved equipment.

Reviews the book "Corporate Records Retention: A Guide to Requirements of State Governments of the U. S."

This article attempts to set forth a primary objective of accounting education and to show how it is compatible with more general education. Knowledge of business situations is dependent upon an ability to communicate in the language of business, whether it be in relation to past performance, present position, or future expectations. Accounting education, with a primary objective of preparing students to better evaluate situations or conditions, is in position to provide specialized training not provided for in general education as such. The primary objective of accounting education is to better prepare students to evaluate conditions and situations whether they be business, public, or private, in which monetary or economic considerations are paramount, yet with a full awareness, on the part of the evaluator, of the moral and ethical considerations involved. The technical aspects of accounting must also be taken into consideration in deciding the right course. However, the inclusion of technical accounting training at the college level need not be at the expense of the primary objective.

Reviews the book "Sampling Tables for Estimating Error Rates or Other Proportions," by R. Gene Brown and Lawrence L. Vance.

Reviews the book "Construction Accounting and Financial Management," by F.W. Martin.

Reviews the book "Accounting and Tax Aspects of Patents and Research," by J.A. McFadden and C.D. Tuska.

Computation of equivalent units of production seems to be a difficult problem for many accounting students. There are at least two major reasons for this trouble. First, students attempt to memorize formulas and become confused when, in different courses, they are taught different formulas. Second, students often fail to grasp the basic concept of what "equivalent production" means. In the article a chart has been presented to solve out these problems. One of the formula that has been derived from the chart shows that the equivalent production of any industry depends upon three entities, the material transferred in, equivalent complete units of ending inventory, and equivalent complete units of beginning inventory.

The comparative studies of accounting and other fields of knowledge have so far been rather rare. It seems odd that in accounting which by its very nature is concerned with monetary, therefore measurable, values, the concept of scientific measurement has been slow in developing. Since ancient times, accounting has been primarily concerned with the recording of the facts of a transaction, such as receipts or disbursements, and the value placed on the transaction was of only incidental significance. Only since the industrial revolution has the measurement of accounting values, as compared to recording techniques, received increased attention. The development and gradual refinement of cost accounting methods involved not only the determination of costs, but also analytical processes and comparisons between cost items which made scientific measurement of the primary data a logical prerequisite. The expansion of the corporate form of business and the resulting necessity of making financial data available to a broader public, on the other hand, led to comparative statements and the establishment of various kinds of ratios which required a refinement of tools in measuring primary balance sheet data.