Knowledge that Transforms

In this article the author presents his views regarding accounting profession. He adds that the word "career" involves some degree of permanence, and therefore a person is trained for it through a combination of formal education and practical experience. Undoubtedly today educational institutions are attempting to teach things that can best be learned through experience, and by the same token the profession is attempting to impart through experience knowledge that could best be imparted by the schools. If this concept, that training for a career is a combination of formal education and practical experience, is kept in mind, he believes that the educational processes and techniques can be designed so as to better prepare the graduate for the experience which he will receive. At the same time, there is a need to establish and maintain standards of training by experience which will take full advantage of the education. In other words, it should be possible to develop these two important elements of training to such a degree that they will complement each other with a minimum of duplication of effort.

This paper draws attention to the increasing use of the concept of "model" in accounting literature. It distinguishes between economic models and accounting models, defines the latter, demonstrates the presentation of a whole accounting cycle in the mathematically formal way of an accounting model, discusses by way of a practical example the independent and dependent variables in such a system and shows how the structure of accounting models is graphically presentable. It finally gives, with the aid of some balance-sheet-ratios, an example of combining accounting models with economic models and indicates the application of this approach to a prospective area which still can be considered to be the accountant's. The paper, however, intends to be nothing more than an experiment. There is no denial that the conscious and systematic application of mathematical models to certain branches of economic science opened new paths and perspectives, not without enriching our insight into many a problem. It therefore seems to be comprehensible if accountants try to dabble and experiment in this apparently promising field.

Reviews the book "An Introduction to Automatic Computers," By Ned Chapin.

Reviews the book "Taxation of Life Insurance," by Bertram Harnett.

Reviews the book "Accounting for Non-Accountants," by John N. Myer.

As accountants, our responsibility is to report on the trusteeship of management. Management in turn should not be charged with accountability for assets and liabilities or for the determination of income on a basis other than the basis of the actual assets that were placed in use and consumed in operations. Furthermore, as accountants, we should firmly resist efforts to confuse accounting principles with devices to secure increased rates for a utility or to obtain income tax deductions. An accounting principle is supposed to apply with equal fairness and reasonableness in all situations where applicable, whereas a device is simply an expediency for a special situation. Historical cost of assets is not a fetish as some assert, but it is the actual basis on which management does its planning and operates the enterprise. Is not depreciation then the amortization of a capital expenditure that represents a charge to income of the actual cost of the expenditure over the useful life of the asset represented thereby? How can depredation with fairness and reasonableness be anything else than that?

Reviews the book "Tax Planning Under the New Regulation."

Reviews the book "A Dictionary for Accountants," 2nd ed., by Eric L. Kohler

Reviews the book "Accounting--A Social Force in the Community," by Mary E. Murphy.

The article presents a study of several business schools offering master's degree in business in the U.S. The Master's degree is sometimes considered as terminal and sometimes as a foundation step toward the doctoral degree. The two objectives are usually well harmonized and actually there need not be too much difference between the requirements. For a long time, it has been recognized that many students of superior ability need financial assistance in order to go to college, and this is particularly true if they continue on beyond the first degree. In general, the schools have been holding scholarships for tuition, fellowships for larger amounts including room and board, assistantships with a little greater flexibility, teaching assistantships, teaching associateships and instructorships for top amounts. Since loans have to be paid back, often with interest, the student is reluctant to take a loan if he can secure the means some other way. The survey shows that as compared with seven years ago, the non-service type of grant is gaining and the requests for loan funds decreasing.