Reviews the book "Shareholder Democracy," Frank D. Emerson and Franklin C. Latcham.

Reviews the book "Introduction to Investments," by John C. Clendenin.

This article focuses on the evaluation of student aptitude and student accomplishment in accounting. The best measure of student aptitude available was the scores on the battery of tests weighted as indicated by the coefficients of regression. The first step in the process was to set up an aptitude score for each of the 850 students in the accountancy course. This score consisted of the results of the battery of tests weighted. Eight groups of twelve students were then found whose aptitude scores indicated that they were approximately equal so far as their possibilities were concerned. There were eight instructors in the course and each one of these groups was composed of students who had studied under a different instructor. The total accomplishment score of the students in each group was taken as the measure of teaching efficiency of the instructors. Furthermore, the whole rating is based upon two fundamental assumptions. The first assumption is that the aptitude score actually measures accounting aptitude, and the second assumption is that the accomplishment test given actually measures accounting accomplishment.

Many credit men and bankers tend to place a high value upon the condition of the current ratio as found in balance sheets in extending credit to borrowing clients. In many instances the ratio of current assets to current liabilities is taken for granted without adequate reasons being given for the underlying causes that brought about the change from a former position. In a particular balance sheet, the ratio may show the same figure of, three to one at the close of each of two fiscal periods, or it may show a change to a decidedly higher ratio of four to one, or again to a lower ratio of two to one. The credit man should analyze his balance sheet far enough to ascertain whether or not the improvement in the working capital was caused by the investment of inside money or outside money. Bonds involved mortgage liability and increased overhead costs. Capital stock naturally has no foreclosure possibility, but demands its rent. The changes in the ratio, caused by increases or decreases in the working capital are fundamental. They are apt to be permanent, therefore, should be analyzed carefully, in order to ascertain if the financial structure has been altered seriously by the change, as for example the flotation of bonds to fund the current debts.