With rapid advances in knowledge, there have been corresponding pressures to accelerate instruction. The theory and teaching of accounting have not been immune from these pressures. One basic difficulty observed in teaching the first course in accounting is the student confusion in learning contradictory meanings applied to operational terms "debit" and "credit" when these terms are used to interpret the effect of transactions on accounts. Characterizations "source" and "use" of funds, when applied to accounts, are similarly contradictory depending on whether the balance of an asset or liability account has decreased or increased. The two-way cross-classification or matrix systems do not remedy this difficulty, because all accounts are listed on each of two dimensional axes. However, the difficulty may be overcome by conceiving of accounting as a system for interpreting, cross-classifying and measuring transactions in terms of attributes "asset" and "claim." The article proposes this matrix system that will assist in eradicating the confusion among accounting students.

The article focuses on efforts made by Accounting Careers Council (ACC) to encourage students to take up collegiate education for accountancy and financial management careers. To a great extent, the council's work has been centered around the creation or revision of career brochures and their distribution. However, since 1965 the ACC has embarked upon more overt forms of encouraging promising students to consider accounting as a possible career. These efforts include nation-wide mailings to the American Personnel and Guidance Association and National Council of Teachers of Mathematics. Throughout its passive and active participation in encouraging careers in accountancy and financial management the ACC budget has more or less evolved from around $5,000 a year to its present $18,000 a year. However, it is concluded that budgetary allocations for the ACC should be guided by those factors which are found to be influencing the career choices of promising students. Since career choice is determined by the end of the sophomore year, the ACC funds should be committed to the high school and early collegiate years.

The article presents a heuristic approach to effective rates of interest being charged on loans repaid in equal installments. For instance, a situation is considered in which a one-year loan to be repaid in 12 equal monthly installments and a 6% interest rate quoted on the original unpaid balance is calculated. Figuring the average amount of outstanding principal for the year and dividing that amount into the interest charge to compute the effective rate would compute the effective rate of interest charged. A short-cut computation is available to convert from a quoted rate to an effective rate but noting that it is only necessary to multiply the quoted rate by the ratio of the original principal to the average principal outstanding. Still, a further shortcut is to note that the average principal outstanding is equal to the average of the sum of first schedule balance and last schedule balance. Assuming a 36-month loan to be repaid in equal monthly installments and a 6% annual interest rate quoted on the original unpaid balance effective rate is calculated. The result suggests that the effective rate could approach but not exceed twice the quoted rate.

Technological advancement characterized by the space age has brought in numerous changes in industries in the U.S. The era has witnessed rapid growth in development programs associated with space, missiles and electronics. Impact of these changes are somewhat limited to engineering and scientific programs, however, it should not be inferred that these factors have not affected the business environment of all industries. In the wake of these changes, questions related to the manner in which this emphasis on research and development has modified the environment of business firms, and implications of these changes for businessmen and accountants are of significant importance. The article focuses on some of these questions fueled by technological changes, and their impact on the realm of management, financial control and cost accounting. The analysis related to these questions relates primarily to advanced technology programs which are typical of the aerospace era. Using this approach, it is easier to appreciate fully the impact of these environmental changes.

Reviews two books "Auditing," 2nd ed., by Joseph A. Silvoso and Royal D.M. Bauer and "Illustrative Audit for Auditing."

Reviews the book "Petroleum Accounting Practices," by Stanley P. Porter.

The article reviews the book "Objectivity in Accounting," by Curtis Holt Stanley.

In cost accounting many of the biggest problems occur in the overhead element. One of the frequently posed overhead problems rise in consolidating substantial error in the absorption rate due to a volume change in operations. The usual text treatment leaves past operations uncorrected, simply alters the absorption rate to a new incorrect figure. This lets the error in the months of operation prior to the recognition of a need for some adjustment. A type of graphical analysis might be utilized as a simple but effective tool to clearly demonstrate the respective alternatives of either making an adjustment in the accounts and using a corrected rate or allowing the old figures to stand and simply routing your overhead application rate to a new basis designed to offset the past error by a counterbalancing error over the remaining financial period. However, graphical analysis vividly demonstrates the difference in the effect of the alternatives on absorbed cost during the planned production period.