Knowledge that Transforms

Abstract This article makes an attempt to rationalize the relationship of accounting instruction to a liberal course of study. The lack of uniformity as to the extent and as to the type of accounting instruction offered by liberal arts colleges leads one to believe that rationalization upon this subject has not been conclusive. For the last thirty years, the addition of courses in Economics, Commerce, and Business Administration is one of the outstanding developments in the content of the curricula of colleges and universities in the U.S. The principle which differentiates schools or courses of instruction is to be found in the fundamental purpose which they are designed to serve. In a professional school courses are designed and taught with the idea of preparing men for some special function or profession in life. Accounting maybe described as intelligent counting. It is as essential in the determination of the facts of economic and business experience as are sound and adequate laboratory and field methods in the field of natural science.

Reviews the book "Aptitude Testing," by C.L. Hull.

Abstract This article presents information on happenings in several universities. In Boston University, Boston, Massachusetts Professor Henry J. Bornhofft is to be on sabbatical leave this year. Mr. James V. Toner is returning to the department after a year's absence. Mr. Arthur W. Johnson, New York University, has been appointed assistant professor in the department. The following promotions were made in the department: Edward J. Hyland, assistant professor, Charles H. Cornell, assistant professor, Raymond L. Mannix, associate professor. In University of California, Berkeley, California Mr. Paul A. Dodd, associate in economics, will be completing his work for the Ph.D. at Pennsylvania this year. Dr. Lewis A. Maverick is returning as lecturer in economics to assist in the fields of statistics and economic theory. Mr. Ira N. Frisbee was promoted to the rank of officiate professor. In University of Illinois, Chicago, Illinois Mr. C.B. Cox, assistant in accounting, is leaving to join the staff of Peat, Marwick, Mitchell and Co., Detroit. Mr. C.B. Larimore, Nebraska and W.H. Stout, Illinois, will be assistants this year. In University of Montana, Missoula, Montana Dean E.C. Line is teaching in the summer session at the University of California. Professor Sanford is doing research work in accounting with the Montana Power Co., making a special study of the federal water power requirements.

Reviews the book "Hand-to-Mouth Buying," by L.S. Lyon.

Reviews the book "Commercial Law by Cases."

Reviews the book "Forms in Modern Business Systems."

Reviews the book "Problems in Auditing," by Arthur W. Hanson.

Abstract This article compares actuarial formula with sinking fund type formula for valuation. The objections to all sinking fund type formula are generally over-ridden with too great ease. This fault involves a fundamental question of financial policy, which it would seem is sufficient to cause the rejection of all sinking fund type methods of valuation and the use of the so-called compound interest actuarial method for all commercial situations save those in which some contractual or statutory requirement actually calls for a bona fide sinking fund. Under the compound interest actuarial premises the capitalist receives at the end of each year simple interest upon the amount of capital he has outstanding at the beginning of each year. The distinguishing feature of all sinking fund valuation methods is that no capital of the original commitment may be returned to the investor during period of investment. A sinking fund is created, or assumed for the purpose of valuation, in which any capital return from receipts is placed.

Reviews the book "Bank Sales Management," by Mahlon D. Miller

Abstract This article focuses on the budget program instituted by the production department. The chief problem will be to produce the goods in time for their sale. In order that this may be done, or that production and sales demand may be coordinated, an inventory record of the finished goods must be kept. These records will include a control over the minimum and maximum amounts of inventory which should be on hand. The production department may consider it best to follow the lead of the sales department by manufacturing the product for the seasonal demand and shutting down until production again becomes necessary. This is the practice in many industries. In the first place, the practice of working at a high pitch for a few months of the year is not the best way of using plant and machinery. Second, it is often more economical to buy raw materials when the season is over and the demand less. Third, it is well known that men do better work when operations are regular than when they are forced to turn out rush orders.