C. Lowell Harriss, Revenue Implications of a Progressive-Rate Tax on Expenditures: A Study of Selected Aspects of Irving Fisher's Proposal to Eliminate Savings from the Income Tax Base, The Review of Economics and Statistics, Vol. 25, No. 3 (Aug., 1943), pp. 175-191

Abstract This article focuses on the structural fundamentals of financial statements. Financial analysis sometimes goes astray in assuming that the balance sheet at the year-end represents the average condition prevailing throughout the year, a condition which in some respects is usually not the case. An average balance sheet for the entire year would provide a better basis of comparison. Consistent treatment of the various classes of elements in all financial statements would soon lead even the casual reader to a better appreciation of the basic financial aspects of business activities and their results. The primary relationship expressed in accounts is that of equality. Entries are equations, ledgers "balance." Accounting starts, then, with the primary proposition that this equals that. Naturally many accounting statements stress this feature of "equality of factors." In the balance sheet attention is directed to the fact that property is equaled by ownership. A cash statement may show that the opening balance plus receipts equals disbursements plus the closing balance.

Journal Article Welfare Economics and Rationing Get access W. C. Haraldson W. C. Haraldson New York City Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 58, Issue 1, December 1943, Pages 146–148, https://doi.org/10.2307/1885762 Published: 01 December 1943

Abstract This article talks about some reports, which has been published in the April 1943 issue of the accounting journal "The Accounting Review." As to committees, it seemed advisable to appoint territorial membership solicitors to use a printed statement of Association objectives in a persistent campaign. Opinion at the meeting of May 8, 1943 was favorable to attempting some research looking toward a statement of cost accounting principles to be formulated by a special committee. Other research projects, if any such appear, can be given to other special committees to study. After some experimentation along these lines for a while, it would be necessary to decide whether research should be continued by special committees, by designated standing committees, or by research directors. Other matters of Association policy will probably need to be studied later also, when orderly legislation is once more possible. The established election procedure could not be followed in 1942, and emergency action was taken as reported in "The Accounting Review," for January and April, 1943.

Abstract Reviews the book "Accounting Fundamentals," by Richard E. Strahlem.

Abstract In this article the author presents an interpretive observation of the examination questions in auditing. He analyses, whether the examination questions changed as auditing has developed during the past forty-five years. According to the author, the observation of the studies conducted in this field shows the tendency for questions on auditing procedure to grow less prominent. Auditing theory and non-auditing questions increase. The ranking of question types in these studies also provide some suggestions of the change. The first ranking item in the earlier period was number ten in the list for the lastest period, the second later became fifth, the third was seventh, the fourth practically disappeared later, the fifth item became fourth, and the sixth became eleventh. It is clear in the studies that changes are taking place. Broad general questions on the nature and purpose of auditing are of late being replaced by questions that are more pointed and specific. Earlier auditing examinations made frequent use of questions on the theory of accounts. The trend has been away from this type of theory question and toward theory as it involves accounting statements.

Abstract War conditions as in 1917 and 1918; have again focused considerable attention upon obsolescence. Most of this attention is directed to obsolescence as it affects income taxes. In 1918 the Bureau of Internal Revenue first permitted the accruing of ordinary or normal obsolescence through the depreciation rate. During the present conflict the granting of war-necessity certificates and the use of accelerated depreciation rates result in part from the recognition of the desirability of accruing obsolescence, even though such accrual is merged with physical depreciation. Conversion of facilities to the manufacture of war supplies, and other changes which have been required in manufacturing processes forcibly bring to the attention of accountants and owners certain factors which are present in a lesser degree at all times. If a product or service is no longer in demand, then producers are forced to abandon equipment at once. This condition would cause compulsory obsolescence. However, in the case of improvements or the appearance of new techniques in production, a producer may often exercise the choice of using the old equipment for a longer period of time or of substituting the new equipment at once.

Abstract Buying for the government is subject to a vast aggregate of statutes, Executive and administrative orders, legal interpretations by the General Accounting Office, and court decisions. Some rules, such as those relating to standardized specifications, have their parallel in private business enterprises. Others have, but only if one forgets that a rule-making power vested in Congress and a separate administrative responsibility vested in a department head are likely to afford much less flexibility of rules than exists where not only administrative responsibility but also a generous measure of rule-making power are vested in a single manager. The contrast is all the greater if the business concern which the manager runs is not itself a body of such great size as to have the sort of complexity which characterizes governmental organization. Funds for procurement or for non-procurement purposes are usually made available in and for a single fiscal year. In the enforcement of the laws with which Federal procurement is hedged about, the General Accounting Office figures much more largely than the courts. Infractions of those laws usually are less classifiable as criminality than as inept or culpable administration, or as an admirably motivated if indiscreet effort to get a job done even at the cost of scissoring some red tape.