IN A PREVIOUS article1 I made a brief and incomplete survey of the theory of depreciation. In the present paper I discuss its practice. One obstacle to practical progress in this field is that mathematically trained minds are seldom well informed on what accountants actually do. The latter are therefore more often criticized for methods which they are not using than for those which they are. Even otherwise valuable contributions thus elicit opposition quite unnecessarily. The inappropriate antithesis tends to discredit the rest of the argument and prompts general retorts, for instance that is a of . . . determined by the practices of men.-Where accounting treatment diverges from economic theory, a similar divergence is likely to be found between economic theory and practice.2 Such an attitude, in turn, is not very helpful or progressive, even if the dangerous phrase tool of business is interpreted only in its best possible sense. In the article cited, I probably added to the already existing confusion by calling sample methods by certain names without proper qualification, although the same names are commonly applied to substantially different methods. The truth is that the familiar singlemachine formulae permit of different interpretations. To clarify the situation, the present paper identifies a greater number of methods unequivocally by developing their basic many-machine equations and comparing the results. References to practice and to individual writers' ideas are made wherever possible, before choosing a method which appears best suited to the practical needs of large enterprises and the investing public.

Harrison Clark, Robert A. Winters; The Incidence of Pay Roll Taxes: Comment, The Quarterly Journal of Economics, Volume 54, Issue 1_Part_1, 1 November 1939, Pag

Reviews the book "Origin and Evolution of Double Entry Bookkeeping," by Edward Peragallo.

Reviews the book "Business Mathematics," by I.L. Miller and C.H. Richardson.

In this article, the author discusses economic aspects of fixed-capital obsolescence illustrating issues in patent laws and ordering. He describes that prior to the twentieth century, obsolescence of fixed capital or intellectual assets was usually treated as a factor of depreciation. In recent years an attempt has been made in some instances definitely to separate depredation and obsolescence. ice. Although alike in their fundamental nature, the two are traditionally separated because the latter is consumed in a single use, while the consumption of the former extends over a longer period of time. The physical results of depreciation are apparent, but the same cannot be said of financial results. Accountants also suggested that in many cases producers must use their judgment as to what they consider the best time to retire certain assets from use. There has been considerable agitation in recent years toward a change in the patent laws. It is claimed that modern economic conditions require several modifications of present laws in order to prevent the misuse of patent rights.

In June 1936, the executive committee of the American Accounting Association published "A Tentative Statement of Accounting Principles." Accounting theory has been debated in the Association's annual meetings and in accounting periodicals with an energy never before displayed. From the beginning the Committee recognized the tentative nature of the statement of principles and looked forward to the time when revision would be undertaken. The appearance of revenue marks the accomplishment of the principal objective of business, namely, placing new utilities in the hands of consumers. The tests by which the reality of the profit or loss that may be embedded in revenue has been judged are as follows, economic tests, service has been rendered by a producer, utility has been accepted by a purchaser, a price has been determined by independent bargaining; legal tests, delivery has been completed, title to product has been passed, producer's claim for payment in due course is "property." Since the association of revenue and performance is basic to the concept of revenue, accounting standards should direct the preservation of that association; recognition of revenue should neither anticipate performance nor be delayed beyond performance.