Knowledge that Transforms

Reviews the book "Beforderungsunternehmungen zur See," by Otto Reuther.

Reviews the book "War Debts and World Prosperity," by Harold G. Moulton and Leo Pasvolsky.

Reviews the book "Department Store Food Service," by Ina M. Hamlin and Arthur H. Winakor.

Reviews the book "Commercial Education in the High School," by Fredrick G. Nichols.

Abstract A second course in accountancy at the University of Illinois, in the United States, is offered to students who have had one semester of accounting fundamentals. These students are, for the most part, second semester freshmen. The text used is the second volume of "Elementary Accounting," which includes discussions and problems involving certain refinements of the first semester's work as well as many new subjects not touched upon previously. When this text was first introduced at the university several years ago it was used in the customary way. Text assignments were made and discussed, followed by the assignment and discussion of one or more disrelated problems on the particular material in hand. In such a course, the development could not be as logical as it had been in the most elementary course. In the first semester's work the student was continually forced to go over material which had been gone over earlier. Each step in the development of this first course depended very definitely upon all preceding steps.

Abstract This article presents information on the financial and operating relationships. In order, to compare the statements of the average public utility with those of an industrial concern one should consider – Ratio of net worth to debt, number of times bond interest earned, Operating ratio, % of fluctuation in gross earnings, % of fluctuation of net income, ratio of net worth to fixed assets. The article also contains some questions related to financial relationships that help the student's to grasp and point out differences in different types of industry.

Reviews the book "The Principles of International Trade," by Huntly M. Sinclair.

Reviews the book "Professional Accounting Training in Collegiate Schools of Business," by Mervin Isaacs.

Abstract The article focuses on valuation of fixed assets. The values of assets might be determined from the equities. Stock exchange quotations provide current values of stocks and of bonds. The total value of all capital stock in the hands of the public plus the face value of bonds and other liabilities would give a figure which might be called the value of the corporation. Another approach to the determination of asset values would be through the process of capitalizing normal earnings. This is a valuation method of ultimate importance in the field of unregulated industry. Still another possible approach to the valuation of a corporation's assets is the one ordinarily taken; an appraisal is made of the assets themselves. Cost is the logical and preferable basis for balance-sheet valuation of plant and equipment. Deviation from cost results in distortion of future income and earned surplus. The belief that asset values of plant and equipment as shown on the balance sheet indicate market value or any other value should be discouraged. They should represent legitimate unrecovered costs, long-term prepaid expenses, and in this way display the financial condition of the individual enterprise in question.

Abstract The article focuses on accountants' role in determining standards. It has come to a matter of general agreement that one of the primary purposes of accounting is to measure performance and promptly inform management when this performance is such as to merit special consideration. To measure either individual or group performance requires certain standards like collect and analyze statistical data which will be useful to those who must pass judgment on what constitutes good performance. Counsel with various executives upon whom these responsibilities fall. Record the standards set and their continuous revision. Inform those who set standards as to apparent discrepancies or errors. Promptly report variations between the actual performance and the standards, collecting and analyzing all data which tend to explain such variations. Translate the variations between actual and standard performance into such terms as will clearly and forcibly inform both executives and workers as to the ultimate results of such variations. Accumulate a story of individual or group performance in terms of the standards set.