Knowledge that Transforms

Reviews the book "Price and Price Policies," by Walton Hamilton.

Reviews the book "The New York Bond Market, 1920-1930," by Charles C. Abbott.

Abstract The article presents accounting problems which were prepared by the Board of Examiners of the American Institute of Accountants and used by the many cooperating States in the examinations held on May 12th and 13th, 2004. The examination in accounting theory and practice is divided into two parts and the first part of this examination is presented here. Acme Manufacturing Corp. uses a process-cost system; manufacturing costs, other than direct materials and direct labor, are applied to the product in an amount equal to 50% of the direct labor cost and, per contra, are credited to an account, "indirect costs absorbed." The books were closed as of December 31, 1937 when the inventory of goods in process in Process A consisted of 1,000 units of product. In January, 1938, 10,000 additional units of product were started; material requirements in full were issued at a cost of $31,000; direct labor amounted to $39,900; indirect cost was applied at 30 percent of the direct labor cost; 9,000 units were completed and transferred to the next process; 2,000 units remained in process on January 31st with material fully supplied and labor averaging 50 percent complete. The examinee is asked to set up a goods-in-process account for Process A showing total and unit material labor and indirect costs for units completed and for units in process at end.

Reviews the book "The Margin Trader," by Kemper Simpson.

Reviews the book "Auditing Procedure," by P.E. Bacas, J.T. Madden and A.H. Rosenkampff.

Reviews two books "The Causes and Prevention of Corporate Bond Default," by David B. Jeremiah and "The Nature and Extent of Losses to Bondholders in Corporate Reorganization and Liquidation," by WiIliam E. Warrington.

Reviews the book "Principles of Public Utility Depreciation,' by Perry Mason.

Reviews the book "Expenses and Profits of Limited Price Variety Chains in 1937," by Stanley F. Teele.

Reviews the book "Managerial Control," by John G. Glover and Coleman L. Maze.

Abstract It is now generally accepted that double-entry bookkeeping is by no means the invention of one man nor the product of a single generation, but that it is the result of a long evolution. Even today, it progresses under the spur of actual needs, and its development is the result of a persistent effort to adapt the accounting methods to the growing requirements of business enterprise. Its evolution in the past has been dominated by the same commanding necessity of adaptation. There is, however, still one dark spot in the history of accounting. Although it can be perceived fairly well how the double-entry system developed, once the basic principle of duality and equilibrium was laid down, it is hard to understand how it came into being. As a matter of fact, the specialists of the history of bookkeeping have all tried to solve the problem and to offer some satisfactory explanation. Owing to a lack of source material, these solutions, however, are based mainly on conjectural reasoning rather than on factual evidence. Three factors seem to have contributed to the development of accounting: credit, partnership, and agency.