Knowledge that Transforms

Reviews the book "Manufacturing Costs and Accounts," by A. Hamilton Church.

Reviews the book "Corporation Profits," by Laurence H. Sloan.

Abstract It is the purpose of this paper to consider problems encountered in attempting to portray the exact financial status of a college or university, and more particularly the endowed college or university. In preparing a balance sheet for an educational institution it will he observed that certain principles which are basic in all balance sheet presentation are applicable, whereas other principles are not. The purpose of any balance sheet is to set forth the assets and liabilities and the excess of assets over liabilities in the way which most clearly exhibits the financial condition of the institution. There are three main purposes which have been recognized for the assets of a college institution. Certain assets are held for use in a physical way; that is, as the educational plants. Other assets are held in the form of investments to produce income. This second group consists of the endowment assets, and they are to be maintained permanently as income producing investments. The third group of assets are those available for current purposes.

Abstract The article presents a ruling of a judge in the case of Bluefield Co. versus Pub. Serv. Comm on the issue of appreciation. A company since 1899 has owned and operated all the street railway lines in the City of Baltimore, Maryland. Its present capital structure consists of $24,000,000 of common stock, $38,000,000 of ordinary bonded indebtedness and $14,000,000 of perpetual income bonds. The present value of the property used was fixed by the Commission at $75,000,000. Included in this valuation is $5,000,000 for easements in the streets of Baltimore. The Commission fixed a rate of fare permitting the company to earn a return of 6.26 per cent on this valuation. Annual returns upon capital and enterprise, like wages of employees, cost of maintenance and related expenses, have materially increased the country over... what may be a fair return for one may be inadequate for another, depending upon circumstances, locality, and risk "The return should be reasonably sufficient to assure confidence in the financial soundness of the utility and should be adequate, under efficient and economical management to maintain and support its credit and enable it to raise the money necessary for the proper discharge of its public duties."

Reviews the book "Modern Accounting Theory and Practice," by Dewitt C. Eggleston.

Abstract This article focuses on different methods of maintaining capital may well be comprehensively examined and appraised. There are two main views on which maintenance of capital may be based. The first part of this article will briefly judge the more uncommon, less advantageous one. The second part will then evaluate the ramifications of the usual view. According to one viewpoint, the object in maintaining capital should be to preserve the same proportion of the total social capital as was possessed at the time the capital was originally invested. The second objection to relative maintenance of capital is that it is liable to prove unsafe as a practical basis. An ingenious plan that would automatically effect, among other purposes, maintenance of relative capital while utilizing the present system of money is that proposed by one economist. Under such a plan, intended to distribute productive shares in the economic process according to a standard of social justice and business progress would be adequately met by the existing price measuring-unit because changes in the general price level would tend to indicate a productivity change wherein the entire country both should and would share.

Reviews the book "C.P.A. Problem," by Jacob B. Taylor and Hennan C. Miller.

Reviews the book "The Banking Process," by R.G. Rodkey.

Abstract This article presents information regarding the faculty and admission of various university. In the University of Alabama, T.W. Wood, has gone to Howard College, Brimingham, as instructor in accounting. The School of Business Administration is establishing a Bureau of Business Research with H.H. Chapman as director. Enrollment in accounting courses continues to increase and there are now 45 juniors and seniors majoring in accounting. in the University of Chicago, W.J. Graham has been promoted to the rank of assistant professor. H.C. Daines is serving as a member of the educational committee of the Illinois Society of Certified Public Accountants. In the University of Denver, F.C. Onstott, professor of accounting, and university registrar, is visiting the chief university departments of business in the country to make an intimate study of the accounting curricula of these schools with a view to revising the curriculum at Denver. E.A. Zelliott has been added to the teaching staff in elementary accounting. E.G. Plowman has been appointed head of the work in marketing and director of the bureau of business research.

Abstract Accounting has long since been recognized as a science indispensable in its application to daily life, so much so that it seems incomprehensible that times have been, and not even very remote in which it did not exist otherwise than in extremely crude forms. Bookkeeping is such an integral part of accounting that, until recently, the words were held to be interchangeable. That is why, in endeavoring to trace the origin of accountancy, one always looks for the earliest manifestations of bookkeeping. Unfortunately, in making such assertions, one does not always duly bear in mind modern notions of bookkeeping, but if to those ancient documents the criterion of modern, representative, definitions may not be applied, confusion is bound to arise and should be obviated by giving different names such as accounting or account-keeping-to those precious relics, mute but eloquent witnesses of the glories of civilizations of the dim past. In this sense, therefore, accounting and bookkeeping are not identical and the latter indicates a state of evolution that was never reached by Sumerian, Egyptian or other such ancient cultures of which the accounting records are available.