In a world torn apart by two conflicting concepts-capitalism vs. communism, one should place the economic facts before one's own people so clearly and concisely that they may understand them without question. Only then can they determine of their own free will that the enterprise system – however imperfect – still operates to create more human satisfaction than any other system yet devised. The United States has become a nation of capitalists in the broadest sense of the word in that all Americans are generally possessors of property, no matter how small, with which they can do as they see fit. It is clear that financial reporting must be done in such a manner that the vast majority of stockholders will want to read and fully digest the financial statements sent to them annually, or on rare occasions, quarterly. True, not all owners will study the report with the dose attention of a security analyst. Nor can we ever expect to prepare reports so simplified that they will be understood fully by every stockholder in a corporation that has many thousands of owners. But it is one of our first responsibilities to create as many informed stockholders as possible.

The article discusses the significance of invested cost. Accountants have shown reluctance at submerging the long developed techniques related to double entry accounts and historical cost. So they are sometimes charged with being unbending traditionalists. The current impact of changing price levels has stimulated a spirited discussion of accounting ideas. Accounting has always been concerned with doing with its present day ramifications and such, it would seem, as to show that people are in need of other experience also, particularly experience in dealing analytically and persuasively and verbally with controversial ideas. Invested cost seems to embrace more of the concept involved here than any of the other terms alone. It does this in part because invested cost is a phrase that can speak of liabilities and income as well as of assets and expense. It must be clear that expressions such as replacement costs, income expectations, fluctuation profits, lack the concreteness attached to the term invested cost.

Reviews the book "Introduction to Business," 2nd ed., by Raymond E. Glos and Harold A. Baker.

Reviews the book "Federal Income, Gift and Estate Taxes," by Jacob Rabkin and Mark H. Johnson.

Reviews the book "Dicksee's Auditing," by Brian Magee.

Reviews the book "Public Utility Accounting," by J. Rhoads Foster and Bernard S. Rhodey.