Abstract The basic requirement of every academic editor is that each article be a scholarly contribution to knowledge of the field. Contributions in an academic journal may be made by recognizing new problems of the field and suggesting possible solutions. Opportunities for contributions comes when new techniques are devised or become available for the solution of old problems, or when some new programs or new thoughts not always forthcoming as promptly to avoid a new problem. Another type of scholarly contribution may be made in the form of historical analyses. Another dubious candidate for scholarly effort is the voluminous compendium of what others have said on a subject with no adequate or new criticism or evaluation. Manuscripts submitted by authors usually go to the printer in the case of an academic journal, so it should be clear and readable to the editor also. Editor's do have obligations, therefore, a broad view of the possible forms of scholarly contribution is also needed by the editor of a scholarly journal, certainly if the journal is designed for a fairly large and diversified audience.

Abstract The essential conclusion of this paper is that investment and financing decisions must be kept separate. The ability to identify specific sources of funds with specific investment proposals is, at best, an illusion. This point of view is supported by an argument analogous to that applicable to many joint-cost problems of accounting as well as by the "pool of projects" and the "pool of funds" concepts. Investment decisions should be evaluated by the usual cash-flow techniques, as illustrated in this paper. The decision to finance by alternative methods should be based on the rate of interest to be charged which could legitimately be adjusted for differences in restrictions inherent in alternative sources of borrowed funds. Great care must be exercised to avoid the pitfall of constructing illusory discounted cash-flow differentials which are based upon apparent but not real differences in the amount of borrowings. As for leasing, the essential features of a long-term, non-cancellable lease must be understood; it is partially a method of financing and partially a method of investing. For proper evaluation, the financing aspects should be eliminated at the lowest rate of interest available to the company. With financing eliminated, the lease can then be compared to an outright purchase to determine which is the least costly method of acquiring the services of the equipment or facilities under consideration.

Abstract The article focuses on funds flow. Recent accounting literature has produced two articles on mathematizing funds flow. One of the approaches undertaken shows algebraically that the net change in working capital is explained by the changes in non current assets and equities. This article attempts to analyze algebraically the individual changes in non current accounts and thereby provide a means to calculate directly through equations the individual sources and uses of working capital needed for a funds statement. In addition, an algebraic system for cash-flow analysis is also discussed. The algebraic approach provides a flexible means to adapt to different concepts of funds, such as net working capital, cash flow, and net quick assets. The algebraic expression of funds flow is consistent with the trend towards computerized accounting. The equations can be programmed readily and used to generate funds statements. This article uses a complete set of equations to tie together the funds flow from the income statement and balance sheet items, to show the elimination of non fund items, and to show the individual sources and uses of funds in the non current accounts.

Abstract This article examines the fundamental ethical rule in tax practice at the level of personal ethics in the U.S. in 1966. This rule states that the tax practitioner must allow the client to make the final decisions. The practitioner has no right to substitute his scale of values for that of the client. Beyond that, the practitioner must recognize a positive responsibility not to provide false or misleading information to the government. This responsibility is imposed on him by Circular 230 and by the Code of Professional Ethics of the American Institute of Certified Public Accountants.

Abstract The above measures for minimizing exchange exposure do not comprise an all- inclusive list, but they do serve to illustrate possible components of a coordinated program of risk minimization. There are a number of inherent risks in doing business abroad-expropriation, price controls, governmental discrimination, inconvertibility of the currency, and gains and losses from exchange rate fluctuations. Management's greatest opportunity to minimize exchange losses is in the area of exchange exposure. The goal of management is the ideal exchange position in which no gains or losses due to exchange rate fluctuations can occur (net local currency assets less local currency fixed assets equals zero). There are some very definite measures which management can employ to minimize exchange exposure risk. Some of these measures are financial in character, such as local currency borrowing, purchases and sales of exchange forward or "swaps" contracts, cash management policies, and the use of local share ownership. Others are non-financial in character, such as the carrying of excess inventory which can be sold at increased prices if exchange rates decline or the investment of excess local currency cash in plant assets which will not depreciate in equivalent dollar value. Although these activities are classified as non-financial, the importance of the accounting system producing information on the need for and effectiveness of these measures must not be overlooked. If sound accounting information is provided to alert and capable management, there is much that can be done to realize normal profits on investment in foreign subsidiaries and minimize the effect of exchange rate fluctuations.

Abstract The article discusses a study that investigated the attitudes of accounting students towards the elementary accounting course. The authors of the study compared the effectiveness of the traditional practice set versus the business game in teaching elementary accounting principles. They conclude that there is work to be done on a continuing basis if basic accounting instruction is to improve and obtain a greater acceptance as a stimulating subject. The students are a very trying jury and yet their attitudes bear importantly on the future of accounting and accountants in terms of the image conveyed by the use of either term.

Reviews the book "The Foundation of Financial Accounting," by James W. Pattillo.

Reviews the book "The CPA Plans for the Future," by John L. Carey.

The article reviews the book "Managerial Cost Analysis," by James M. Fremgen.

Abstract This article brings into perspective the three major questions involved in allocation of income tax within the financial statements of non-regulated businesses in the U.S. in 1966. The first is the nature of Federal income taxes. The second question is derived from the first, the desirability of allocation. The third question is about what to do with the balance-sheet element resulting from allocation procedures. The author concludes that to match income tax with the related items, the expense and the amount payable will frequently differ.