Abstract In a world torn apart by two conflicting concepts-capitalism vs. communism, one should place the economic facts before one's own people so clearly and concisely that they may understand them without question. Only then can they determine of their own free will that the enterprise system – however imperfect – still operates to create more human satisfaction than any other system yet devised. The United States has become a nation of capitalists in the broadest sense of the word in that all Americans are generally possessors of property, no matter how small, with which they can do as they see fit. It is clear that financial reporting must be done in such a manner that the vast majority of stockholders will want to read and fully digest the financial statements sent to them annually, or on rare occasions, quarterly. True, not all owners will study the report with the dose attention of a security analyst. Nor can we ever expect to prepare reports so simplified that they will be understood fully by every stockholder in a corporation that has many thousands of owners. But it is one of our first responsibilities to create as many informed stockholders as possible.