Abstract In this article the author illustrates the possibility of preparing different measures of income by application of the previously proposed concept of realization and to examine the uses and the conceptual nature of each measure. A scheme of financial statements expressing different concepts of income measured from different points of realization and serving different, though often related, purposes is presented. The author argues that the interest in dividends is well founded. Dividends are the only truly final stage of income from operations of the enterprise. The ultimate fate of retained earnings is indeterminate but the distribution by the firm of earnings as dividends is final. Conventional income computations for vertically integrated firms measure the net income attributable to the firm's entire sequence of processes. According to the present generally accepted income concept, income is viewed as realized at the point of sale. It is often said that a completely definite report of income for an enterprise is not possible prior to final liquidation and that all interim reports are of a tentative nature.

Abstract A graduate seminar conducted by several prominent accountants invited from industry, government, and public accounting has proved to be a worthwhile addition to the curricula at the University of Missouri, Columbia, Missouri. Time is also allotted for private student consultations. Students participate in the course by responding to and questioning the discussion leader, by summarizing the informal discussions for publication and by writing technical papers on related topics. Development of abilities to recognize; define, and analyze current accounting problems is an important part of any graduate program in accounting. The ability to write clearly, logically and forcibly comes mainly from disciplined practice under the guidance of a critical audience. While many courses in the accounting curriculum may offer the opportunity to practice writing, all too few provide critical guidance to point the way for improvement. The success of the program depends to a large degree upon the calibre of the guest speakers and the novelty and significance of the message they have to deliver.

Abstract The purpose of this article is to examine the meaning or meanings of the term, cost, in a comprehensive way, with the objective of providing an interpretive framework to assist in communicating cost information with greater precision and, thus, to assist in utilizing cost information more effectively. Such an interpretive framework should be useful to accountants charged with the responsibility of compiling and communicating cost information, and to the users of cost information whose conclusions and/or decisions depend at least partly upon an interpretation of this information. Accounting measurements of cost are used in manifold ways to express different aspects of enterprise operations. These uses for cost measurements frequently require different interpretations of cost, and it is in this regard that confusion may arise. For the purpose of planning and as a basis for identifying waste and inefficiency, anticipated costs are needed. In most regards concepts underlying anticipated costs are the same as those previously discussed in relation to historical and current costs.

Abstract Concepts of depreciation which are relevant to accounting range from the methodical distribution of original cost, to attempts to measure and report changes in the service potential of the asset, using a discounting procedure. Allocation methods accept the distribution concept of depreciation whether this is related to original cost or some other figure, and attempt to answer the more pragmatic problem of how much is to be allocated to different periods. There is a prevailing confusion related to the definition of depreciation. One of the main causes of this confusion appears to lie in the usage of the word depredation which by its nature and common usage carries with it implications of physical deterioration, impaired efficiency, obsolescence and so on. It is suggested that, in view of the obvious confusion caused by this conflict in terminology, accountants would be well advised to restrict themselves to using the term amortization. The point that should be considered is whether the concept of amortization which is proposed is compatible with the accounting model with which it is to be associated.

Abstract This article focuses primarily to matters related to the teaching of accounting. The traditional accounting equation has, for many years, served as the fundamental identity in teaching introductory accounting courses. Many teachers employ this equation in varying degrees of extension, to conceptualize the accounting system, and in particular, to establish the relevant relationships between transactions, accounts, debit and credit entries, and the end product of the accounting process the financial statements. The author hopes to show in this article that, with very little effort and difficulty, the traditional approach may be extended so as to include the derivation of the financial statements themselves, within the equational schema. This allows a very complete and simple model of the whole accounting process, and one to which, in the author's experience, beginning students are quite receptive. The number of students who have retained this initial model and subsequently commented upon its relevance to more advanced work, particularly in designing computerized accounting systems, has confirmed its utility.

Reviews the book "Long-Lived Assets," by Thomas R. Dyckman.

Reviews the book "Audits of Banks."

Abstract Providing purpose oriented information appears to become an important part of the accountant's function in the future. With the increasing utilization of the computer in carrying out many of his past functions, this role may even be crucial to the accountant's professional survival. However, before the accountant can fulfill this role, methods of drawing information of different types from the available financial data must be developed. This article has provided some basic research for attacking this problem through the removal of the traditional assumption of a fixed time dimension in accounting reports. It was found that when this assumption was relaxed, quite different information was provided by identical financial data. It is not the intention of this article to suggest that the traditional method of reporting financial data be superseded by an alternative method. The purpose of this article is rather an attempt to uncover new avenues for possible improvements in financial reporting by emphasizing the varied types of information available from financial data and by showing the ever present characteristic of quantitative information to portray certain relation- ships while concealing others.

Reviews the book "The Capital Expenditure Decision," G. David Quirin.

Abstract The article outlines a statistical approach in cost measurement and control which can be easily implemented in practice. This approach will allow accountants to convert certain types of costs currently treated as overhead costs into traceable direct costs. The detailed cost measurements on individual inventory items provide "more information" than knowledge of only the total inventory cost. Cost accounting systems, often very elaborate cost accounting systems, are designed to detect and measure resource flows for both product and responsibility center costing. In general, however, detection and measurement costs increase as more detailed information on resource flows is desired. Accounting systems for this reason resort to collecting aggregated information. The aggregation itself may be over various types of activities, time intervals, or products. If one desires to study marginal costs, an examination of costs allocated to idle time will prove helpful. In summary, statistical cost finding is no panacea for accounting problems, it is rather a useful tool for developing information not usually found in the books.