Knowledge that Transforms

Reviews the book "Economic Tendencies in the United States," by Frederick C. Mills.

Reviews the book "Advanced Accounting," by Frank H. Streightoff.

Reviews the book "Gold and Monetary Stabilization," edited by Quincy Wright.

Reviews the book "The Fight for Financial Supremacy," by Paul Einzig.

The article presents information that bright students at the University of Illinois, in the United States, are encouraged to do a portion of their study without class room attendance. This may be done at the student's option either by preparing a written thesis or by doing special reading. The senior thesis option has been available for about ten years. It is required of seniors who expect to be graduated with High Honors but is open to others by special permission. The intention is that the student will make an intensive examination into some topic of personal interest; perhaps it will be in regard to some subject matter which was but briefly treated in one of his classes, frequently the study is more directly related to his own specific business intentions or to some family enterprise. The administration of the work is simple for after the student has selected his topic he works individually with the faculty man who is thought to be best acquainted with the field of his study. The few conferences which are necessary regarding sources, outline and occasional "snags" are no great burden on the teacher and reading the finished work is more interesting than otherwise.

The article focuses on accountancy under economic self government. There is general discontent with the economic system, with the political system, and with the relation between the two. There is also general aversion to political and bureaucratic government interference in economic affairs. A National Economic Council is often proposed. But usually this council is conceived as a superstructure to be imposed upon the existing national economy. A National Economic Council to fit the American idea therefore should receive its powers, duties and responsibilities from the business system which it would represent. Such a body would not be a revolutionary proposal; it is modeled upon the system long accepted by the American people in political matters. Through the channels of this organization accounting information would flow from the business enterprises, through the institutes and federations of accounting, to the National Economic Council, particularly its Division of Accounts. This information would provide the basis of a national economic balance sheet and economic budget plan.

The article focuses on importance of clarity in balance sheet display. One of the most important pieces of work which a public accountant is called upon to perform is the preparation and analysis of balance sheets and financial conditions. By no means is this the mere listing of certain assets and liabilities. It resolves itself into a matter of judgment in arrangement and valuation, and judgment is often a matter of one's experience in judging and noting the results in previous situations. The matter of prime importance to consider is the type of person who will be called upon to read the balance sheet. In a recent examination, it was discovered that the management had been giving itself some systematize, but serious-minded kidding by working on the assumption that installment accounts receivable were not subject to the need forbad debt reserves. This is a matter of problem of valuation. According to the author, balance sheets must be prepared for the benefit of the reader and must be grouped to give him the benefit of the most accurate information available, in the most readable form. It should give him all of the facts and the facts should be stated clearly.

Reviews the book "Planned Money," by Basil P. Blackett.

This article discusses the status of partners' loan accounts in partnership dissolution by the provision of the Uniform Partnership Act. It was the intention of the lawmakers, in this provision, to give partners' loans a claim ahead of capital. The rank of liabilities in order of payment follows--those owing to creditors other than partners, those owing to partners other than for capital and profits, those owing to partners in respect of capital, and those owing to partners in respect of profits. The practical application of this provision, due to the effect of other related legal provisions, leads to a different result. A partner's loan and the capital, in case of dissolution, will be added together and handled as a single claim. Infact, not only loans and capital, but all claims of a partner against the partnership or of the partnership against this partner, at the time of dissolution, may be entered to the same account, whether the claim is for loans, capital, interest, wages or withdrawals.

Reviews the book "Principles of Business Law," by Essel R. Dillavou and Charles G. Howard.