So there may be no misunderstanding of my thesis, I have (1) used the term "capital fund" to indicate the total net capital or resources available for the operation of a business; (2) segregated this "capital fund" into its two component funds, namely "working capital fund" and "fixed capital fund"; (3) stated, therefore, that "capital funding" ordinarily occurs only from net profits and the addition of new capital; (4) held that the internal operations of a business frequently involve the conversion of working capital into fixed capital and vice-versa; that these should be called "conversion funding" because they do not affect the "capital fund," but (5) that all of these funding operations be aptly described in the Application of Funds Statement, so that the reader may clearly see how they affect working capital; finally, that the term "non-funding operations" is misleading and incorrect because these are clearly operations between the two component funds which make up the total capital fund of a business; they are funding operations, hence the term "conversion funding" is recommended.

The problem of the proper determination of stockholder income hinges upon the concept of the nature of the corporation. In the years that followed, the idea that the corporate form of enterprise constituted an artificial being, in itself apart from its constituent members, grew to a preponderant position not only in legal status, but in accounting and economic thought. If economic significance is measured in terms of total dollars of assets committed to corporate enterprise, the close or private corporation occupies a distinctly secondary position. It is rather the public or widely owned corporation with which we must concern ourselves. The relationship between the corporation and most individual stockholders is in the case of the public corporation only an indirect and ephemeral one. A few owners of concentrated stockholdings exert, as members of the board of directors, a direct influence on management; stockholding for most individuals, however, is just another form of investment. The corporation's financial independence is demonstrated by the fact that about two-thirds of corporate funds are derived from internal sources, undistributed profits, and depreciation and depletion reserves. Furthermore, individuals own not all stock. Corporations own stock of other corporations and often form complex networks of affiliation.

This article focuses on new internal revenue act and the prosperity of the economy of United States. The devices to stimulate enterprise, employment and prosperity, five features are set forth. They are: the extension to two years of the carry-back for net business losses, the modifications in the taxation of dividend income received by individuals, the provisions for accelerated depreciation, provisions for deduction of research and development expenditures and the relaxation of provisions relating to the taxation of undistributed earnings of corporations. The author suggests that perhaps this new code should be looked upon as the first step, or the first few steps, toward a tax system that gives more attention to economic incentives. These features offer some promise of helping. It would be a mistake to regard them as anything more than helpers. They are only a part of an intricate tax system. The system itself is not an all-purpose economic tool, it is only one of several regulators in the economy.

Reviews the book "Canadian Income Tax Appeal Board Practice," by R.S.W. Fordham.

Reviews the book "Policy Formulation and Administration," by George Albert Smith and C. Roland Christensen.

Reviews the book "Accounting Systems: Instalations & Procedures," 2nd ed., by John J.W. Neuner and Ulrich J. Neuner.

Reviews the book "Handbook of Accounting Methods," by J.K. Lasser.

Reviews three books. "Canadian Master Tax Guide," 10th ed.; "Canadian Income Tax Act," 21st ed.; "Canadian Income Tax Regulations."

Reviews the book "Productivity Accounting," by Hiram S. Davis.

This article focuses on federal income tax practice in the uniform certified public accounting (CPA) examination. The uniform CPA examination has had a major role in establishing and maintaining today's high standards. The purpose of the examination is to determine the technical qualifications of young men and women to enter the field of public accounting. If the uniform examination is analyzed through the years, the development of a dynamic profession will unfold through the evaluation of the technical information required of candidates. There are many interesting relation- ships connected with the rapid expansion of accountancy as a profession. One of the more interesting is to note that the expansion of the profession occurred in the period when Federal income taxes were influencing an increasing number of business decisions and claiming a substantial portion of business profit. The CPA is a qualified tax practitioner to the public, and no distinction is made between the tax specialist and the general practitioner. Professionally, this is probably an ideal situation, however, as in the case of accountants and attorneys alike, it could have its disadvantages if all practitioners were not qualified in income tax matters or were not aware of their own limitations and responsibilities.