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SUBSTITUTE TERMINOLOGY FOR 'STOCK DIVIDENDS'

Floyd F. Burtchett
The Accounting Review 1933 8(4), 344-344
This article focuses on stock dividends. The term stock dividend describes the form in which the dividend is declared and paid, and it implies that it is declared from surplus under the same legal limitations as any other dividend. That it is a true dividend contemplating the alienation of assets from the corporation cannot be defended upon any ground. Two terms suggest themselves, capitalization dividend and encapitalization dividend. The latter would be preferable since encapitalize carries the connotation of putting into capital. If the form of the dividend declaration were added to either of the phrases, the latter preferred, a somewhat more satisfactory terminology would be secured. In every instance the idea of locking up something in the capitalization accounts would be implied; the use of the word dividend would carry sufficient legal limitation to differentiate split-ups and recapitalizatious. It might not be necessary to add the word stock, debenture, or bond, since these would be identified by the individual declaration. Accountants can do more than any and all other persons combined to improve the unsatisfactory terminology now extant.

THE COST APPROACH.

R. H. Eaton
The Accounting Review 1933 8(4), 345-348
The article focuses on the cost approach in accounting. The use of the cost approach was not an attempt to teach cost finding but rather to introduce the students to the subject through the use of simple logic of the interrelation of the main accounts of factory bookkeeping. In other methods of approach the student is too often told to do it this way, if the student can only be taught to understand as he goes along the advanced work in the subject will be more easily grasped. After the student thoroughly understood the elementary definitions, work was started on actual manufacturing. In presenting the books of original entry, no new problems were used. The class it worked the old problems which eliminated the need for analysis of transactions and still give them a review of all that had been covered before. The reasoning back of such a plan is ideal, but in actual practice it was not as successful as had been anticipated. Selling and administrative expenses were presented alter the books of original entry.