The conduct of business enterprise is the source from which accounting theory takes its rise. When business enterprise worked with relatively undeveloped resources and through a relatively undeveloped technique of production, the circumstances of its operation were comparatively unstable. The conduct of enterprise did not run in exact terms. Managers had to be satisfied with approximations. But in modern times a high degree of technological development has been accompanied by an increasing size and complexity of business organization. Management has come to Include coordination of a great variety of activities. Business control has come to rest upon exact management and appraisal of both business and technological facts. If it is true as above stated that accounting does develop out of practical business administration affairs, then this fundamental changes in the circumstances of business administration should be reflected in accounting technique. Accounting theory grew up as a body of rules or principles governing the application of double entry technique to the affairs of business enterprises. But as business administration has changed in character an accompanying change has taken place in the technique used by it. Much statistical technique not included in the double entry record has made its appearance in the accounting system.

Since the origin of fraternity life in the U.S. colleges and universities, the proper method of financial control has been one of the most vexing problems. Prior to the last decade little constructive work had been done in producing a satisfactory routine which would be both practicable and at the same time sufficiently simple for the training, or lack there of, which the average fraternity treasurer possessed. In the past ten years, however, more and more attention to the question has been paid by college officials, officials of national groups and by the personnel of groups themselves and this has resulted in several interesting developments. This trend may be accounted for in several ways, but probably follows the general interest which has become manifest due to federal regulations, higher costs and other factors. There are several factors peculiar to fraternal accounting control which are not to be found in most other types of organizations. The personnel of the college fraternity is a rapidly changing one. This means that the average treasurer no more than has time to become efficient as a business manager and bookkeeper when he passes on and the next victim takes his place.