Knowledge that Transforms

The article focuses on several books related to accounting. Some of the books mentioned are, "Management Accounting Principles," by Robert N. Anthony, is identical in organization and presents several accounting problems and cases; "The Theory of Profit Determination on Long Term Contracts and an Appraisal of Australian Practice," by G.W. Beck, states that the percentage-of-completion method is the proper one for the determination of periodic profit on long-term contracts; "The Valuation of Property," by James C. Bonbright is a contribution in the field of applied and Institutional economics; "Management Information and Accounting," by R. Warwick focuses on cost accounting, which for a number of years has been a phenomena in transition; "SEC Accounting Practice and Procedure," second ed., by Louis H. Rappaport, presents information on current accounting practices and SEC policies in the U.S.; "Essentials of Financial Management," by Ernest W. Walker, covers the range of topics usually found in the popular finance texts, and at the same time presents a concise statement on managerial finance.

The article reviews the book "Federal Income Tax Fundamentals," second edition, by William E. Dickerson and Leo D. Stone.

Reviews the book "Guide to Contemporary Theory of Accounts," by John W. Coughlan.

Reviews the book "Social Accounting Systems," by Moshe Yanovsky.

Accounting is closely associated with the development of the modern business organization. Thus, accountants are expected to show a strong interest in recent contributions to organization theory which increases the understanding of the business firm and how it functions. However, an examination of accounting literature suggests that accountants have been relatively unconcerned with current research in organization theory. Although the past few years have witnessed the beginnings of an effort to bridge this gap, much still remains to be done. This article attempts to demonstrate that an understanding of behavioral theory is relevant to the development of management accounting theory and practice. The management of a business enterprise is faced with an environment--both internal and external to the firm--that is in a perpetual state of change. Not only is this environment constantly changing, but it is changing in many dimensions. These include physical changes, technological changes, social changes and financial changes. An important characteristic of good management is the ability to evaluate past changes, to react to current changes and to predict future changes.

The article focuses on the development of accounting mechanics in an attitude natural to the computer environment. The task mentioned is undertaken by restructuring the accounting language. The new product is hereinafter referred to as the "notation." The most essential and conspicuous component of the notation is the root, which is a slight extension of the notion of a chart of accounts. The root establishes the hierarchies of a given accounting system but differs most strikingly from a chart of accounts in that its elements are not accounts. The concepts of an entry, journal, account, gross, net, and statement are derived within the root context and terminology; the meanings given to these words are very distinguishable from classical usage. The root and the directed tree of network analysis are equivalent; hence another body of knowledge can be brought to bear. The notation is suitable for use by engineers, mathematicians, etc., hence communication between accounting and related disciplines stands to be improved. And lastly, another view is offered of unit-value flow, aggregation, and statement generation.

The article reviews the book "Managerial Cost Analysis," by James M. Fremgen.

The article focuses on various aspects of accreditation of accounting curriculums and certified public accountant examination in the U.S. Referring to the standard reference book on higher education American Universities and Colleges, one find that accreditation is understood to comprise four stages including establishment of standards of criteria, inspection by competent authorities to determine whether an institution meets the established criteria, publication of a list of institutions that conform to the criteria and periodic reviews to ascertain whether accredited institutions continue to meet the criteria. To this framework should be added a recent development, or change in emphasis, that is, the reliance upon a pit-visitation self-analysis. The general trend has been that the accrediting bodies are placing less emphasis upon meeting quantitative standards and more upon voluntary improvement. Through self-analysis an institution is, therefore, able to set in motion steps to improve and meet the standards set up by the accrediting body.

The article discusses the development in time-sharing computers and their applications to accounting education in the U.S. The experiences discussed in this article cover a four-year period. The author is thoroughly convinced that time-sharing computers and simple languages. In addition, the author features the support given by the American Accounting Association's Committee on Accounting Instruction in Electronic Data Processing (EDP) to the objectives of data processing. Some important assumptions underlying the recommendation for the EDP education programs of the committee are also explored in this article.