Knowledge that Transforms

The article focuses on socialized accounts in the United States. The author says that the industrial evolution is important in the United States. The new era of the twenties was real as its ideal of full production and abundant living is not lost. The first phase of the evolution of accountancy was likewise the longest. It consisted of two distinct movements. The earliest was concerned with the formation of the accounting mechanism or methodology-bookkeeping; the later movement covered the expansion of double-entry methodology to suit subsequent conditions. An account for money as well as goods is not difficult to reconstruct. A consciousness of proprietorship is more fundamental to the expansion of account-keeping into double entry bookkeeping than bilateral accounts, subtraction by contraentry, equality of debit and credit, or any the other peculiarities of double entry. The second phase of accountancy is related to attempts to secure some measure of control over private affairs in the social interest. The approach was through enforcing a partial sharing of otherwise private business data, of instituting, as it were, semi-public accounts. The third phase will probably carry the socialization of accounts still further.

Reviews the book "Expenses and Profits of Variety Chains in 1931 Compared with 1929," by M.P. McNair.

Reviews the book "The Transportation Crisis," by G. Lloyd Wilson.

This article discusses the economic benefits of capital. The preservation of a proper distinction between capital and income is the fundamental problem of accounting and the aspects of capital are a prerequisite to sound accounting development. A distinction between the capital that serves as an agent of production and the capital that serves as a means of directly satisfying the wants of man is considered desirable, the former may be called "production capital", and the latter, "consumption capital." Modern methods of business, accounting, and finance, as previously suggested, requite all capital to be measured in the common standard of value used throughout the economic community. The substance of capital is usually measured with reference to the ability of capital to command some economic goods; and this ability depends upon the relationship between the monetary amount of the capital and the monetary amount of the particular economic goods. When the valuation procedure selects productivity as the principal explanation of the existence of capital and then values the capital at the present worth of the estimated income obtainable, the process is frequently called capitalization.

The article focuses on the courses in accounting systems. The course in Accounting Systems of Constructive Accounting has long proved a troublesome one. Some instructors have steered a wide course around it, convinced that other accounting courses supplemented with practical experience is sufficient. Others believe that a great deal more can be done through the development of a systems course or courses. The development of machine methods has brought out a mass of material which accounting instructors cannot afford to ignore further. No single textbook has been of great assistance to date, for a number of the instruction state that no text is used in the course. The content of individual courses necessarily varies but from a summary of such content from a number of courses the prevalent aims of the instructors are made evident. One of the principal difficulties encountered in the organization and teaching of the course is the old problem of combining theory and practice. But, still it emerged as a popular course in accounting.

Reviews the book "Economic Tendencies in the United States," by Frederick C. Mills.

Reviews the book "Advanced Accounting," by Frank H. Streightoff.

Reviews the book "Gold and Monetary Stabilization," edited by Quincy Wright.

Reviews the book "The Fight for Financial Supremacy," by Paul Einzig.

The article presents information that bright students at the University of Illinois, in the United States, are encouraged to do a portion of their study without class room attendance. This may be done at the student's option either by preparing a written thesis or by doing special reading. The senior thesis option has been available for about ten years. It is required of seniors who expect to be graduated with High Honors but is open to others by special permission. The intention is that the student will make an intensive examination into some topic of personal interest; perhaps it will be in regard to some subject matter which was but briefly treated in one of his classes, frequently the study is more directly related to his own specific business intentions or to some family enterprise. The administration of the work is simple for after the student has selected his topic he works individually with the faculty man who is thought to be best acquainted with the field of his study. The few conferences which are necessary regarding sources, outline and occasional "snags" are no great burden on the teacher and reading the finished work is more interesting than otherwise.