Abstract This article focuses on the attitude of business students towards social problems. This paper reports comparisons which were made of entering freshmen who have elected a field of business at Virginia Tech with the national average for all curriculums. Of the business students 97.9% believed that the Federal government should do more about pollution, but this percentage was below the national average. Overall, the data indicated that entering business students seem to be strongly concerned about our social and economic problems. Accounting students were found to have positive attitudes toward parents, people in general, and authority, whereas creative writing students displayed negative attitudes. On the basis of this and other research, it seems logical to infer that accounting students are deeply concerned with social and economic problems. The challenge for accounting educators is to promote student interest in social and economic affairs and to assist the student in implementing his skills in a constructive manner toward a solution to these problems.

Abstract The article discusses the controversy over accounting for goodwill. Such issue has been existing for many years, and the recurrence of the problem shows that goodwill is indicative of a more fundamental problem in financial accounting theory. In an attempt to explore the goodwill phenomenon, financial accounting was analyzed from a systems-theoretic perspective. The article explains that accounting entities can be and are usefully conceived as open systems. The concept of open systems indicates the desirability of financial accounting theory being brought more in line with the emergence of management information systems.

Abstract The article examines the usefulness of financial ratios to investors in common stock. It was assumed that the formation of expectations about future rate of return rankings was significant to investors. Thus, the explanatory relationships found to exist between financial ratios and rate of return on investment in common stock were tested for ability to predict rate of return rankings. By moving from unadjusted rate of return to market adjusted rate of return, strong evidence of a market effect on the rate of return yielded by a common stock was found.

Abstract The article reviews the book "Intermediate Accounting," fifth edition, by Harry Simons.

Abstract The article presents information on a business course initiated on an experimental basis at Boise State College. The educational syndrome afflicts a great many junior and senior students. This affliction is characterized by a lack of enthusiasm for course materials, a failure to integrate the various disciplines into a meaningful knowledge base, a concentration on achieving high grades rather than high levels of understanding, and a grudging tolerance of business disciplines which are not a part of the student's major field of interest. The basis for the course is a legally chartered non-profit, tax-exempt corporation licensed to conduct a variety of business activities. The corporation's board of directors consists of six student members and three administration representatives. Grades for the course are recommended by the students and are based on a standard evaluation form which is filled out by each student supervisor. In turn, the supervisors are evaluated by their respective subordinates. These recommended grades are submitted to the class instructor who makes the final determination.

Abstract Reviews the book "The Auditor's Reporting Obligation," by D. R. Carmichael.

Abstract The article reviews the book "Perspectives on Electronic Data Processing: A Book of Readings," edited by James D. J. Holmes.

Abstract The article explores the goal congruence of net realizable value (NRV). The NRV model would have various properties after the evaluation of a decision at the end of period T to hold an asset. A correct decision was made if the NRV income for period T+1 is positive. The NRV income for period T+1 will be negative if an incorrect decision was made at time T. The decision at the end of period T to hold an asset may have been correct is the NRV income for period T+1 is negative. However, if it was correct, another condition must hold.

Abstract The article focuses on an assignment developed to teach accounting students the use of test decks in verifying the performance of an operating data processing system. The assignment was developed in a manner which minimizes both class time and student time required to give the students a clearer understanding of the use of test decks and their limitations. Only one additional class hour was required. Since most of the additional class time is spent orienting the students to a realistic computer accounting program, the time spent should not be considered as solely aiding the test deck presentation in that the instructor can later use the students' exposure to a typical computer application as a basis in discussion of further computer-related topics and/or contrast with similar manual systems. The program used to process the student test decks actually simulates a payroll program. Since many parameters which affect payroll processing change frequently, most of them are read by the program as data at the beginning of each run. The program will process a batch of up to 200 student decks in one run.

Abstract This article presents information on the results of a survey which reflects the views of practicing auditors on the issue of appropriate content for a second course in auditing at the university level. The results of the survey constitute some thoughts on an appropriate direction for auditing and professional education at the graduate level. A questionnaire was sent in batches to participating coordinators in 19 offices representing 16 different CPA firms in Texas. These coordinators distributed the instrument randomly to their respective audit staff personnel. In the analyses of responses which follow the mean importance response was used to rank the topics in order of descending importance, educators may thus be able to compare their judgments with the opinions of practitioners. The mean time assignments for each topic may give educators a starting point for design of the desired auditing course. For purposes of this study, the desired course was viewed as being a part of the fifth year of accounting study by reason of its coverage of material beyond the introductory theory and elementary principles of auditing.