Abstract Development of the controllership functions, and position, as it is found today in American business, undoubtedly can be traced to the official Comptroller in Government posts, performing duties prescribed by law, in an effort to see to it that only appropriated funds were disbursed and for the purpose intended. This Government function came over into business as business units grew in size. Consequently, the position of "Comptroller" was found first in large concerns, such as railroads, mines, and large manufacturing establishments, many of which have had that office for forty to fifty years. A good controller is a service man, and must be a good salesman to sell the services of his department to the heads of the various operating departments. The most important function of a controller is that of interpretation of financial statements and other figures to the executives. It is amazing how some executives shun figures, especially a large sheet of figures. Therefore, it is frequently necessary to put important financial facts in story form with a punch to it.

Reviews the book "Turning Points in Business Cycles," by Leonard P. Avres.

Abstract A number of papers in the March 1940 issue of the journal The Accounting Review, dealing with Federal accounting and auditing, have been prepared by persons familiar with practices now being followed and are both descriptive and critical in character. These papers will furnish a background for accountants who desire to know something about Federal accounting procedures, and it is hoped that they may in some degree crystallize the broad criticisms which have frequently been leveled at theories of Federal fiscal responsibility: many of which have been inherited from the days of intellectual Alexander Hamilton. The Budget and Accounting Act of 1921 placed the responsibility for the accounting systems of the government in the hands of a Comptroller General who as head of the United States General Accounting Office was made independent of current administrations. But the U.S. Congress neglected to provide adequate machinery to control the activities of the Comptroller. Under existing law, it may be worth noting that the person accountable for expenditures of Federal departments is not even the administrator but the lowly "disbursing officer," an employee of the administrator charged with the duty of paying obligations incurred by others.

Abstract The article focuses on theories and practices of accounting. For two decades, accounting processes of the Federal government have drifted along without leadership and with no central guiding principle. Papers, which appeared in the March 1940 issue of journal, The Accounting Review, amply indicated the dissatisfaction of those who have carefully investigated existing practices. There are many persons familiar with Federal accounting to whom the idea of following the commercial pattern is somewhat repugnant. Government is organized for service, not for profit. But costs are the same everywhere and government stands to gain if the well-developed notions of cost accountants can be adapted to the Federal picture. The balance sheet of a Federal department, commission, or other agency need not differ from that of a private corporation, except for the net worth section; yet a number of Federal establishments cannot produce a balance sheet, notwithstanding their ownership and use of various sorts of assets.

Reviews the book "Corporate Financial Policy," by Harry G. Guthmann and Herbert E. Dougall.

Abstract The general use of a C.P.A. certificate as a means of measurement or recognition of an accountant's ability has become so widespread, and the certificate so coveted on the part of most accountants that it would seem as if all who are interested in the profession should be aware of the requirements for the certificate in the various states. In fact, knowledge of the accounting law and of the regulations imposed by the administrative board in each state is probably the first requirement of any potential applicant. The most uniform provisions in all states relate to the candidate's citizenship, his moral character, the examination and the granting of reciprocal certificates. All states require an applicant to be citizen of the United States or to have declared his intention of becoming naturalized. All states require a candidate to be of good moral character. The applicant is usually required to furnish three or more affidavits or references to indicate this quality. The most variable requirement of all is that of professional experience. This article is of help in visualizing the most common requirements.

Abstract In the September issue of the journal The Accounting Review under the title, "Deficiencies in Federal Accounting," it was discussed, among other things, the question as to whether budget accounting should be a part of the general accounting system. The journal took the negative position on this question. The early development of governmental accounting seems to have been along lines generally similar to those of commercial accounting. It was in the Handbook of Municipal Accounting that certain distinctions were more clearly recognized. Among these was an adequate accounting for budget operations, in such form as to indicate the position of the budget at all times. This meant an accounting for encumbrances, since such items must be allowed for in order to show current budget condition. The disadvantage of this procedure came gradually to be understood, as well as the possibility of bringing the two sets of records together. By 1930 the use of a consolidated system, in which the budgetary transactions are an integral part of the general accounting system, was recognized and applied in many places. The control of budgetary operations in the general accounting system does not necessarily mean the inclusion of complete budgetary accounts in the central accounting records.

Abstract Accounting by departments of the Federal Government is not often referred to as a model of modern efficiency, and is commonly regarded as dating from the Hamiltonian era. The organization under the Commissioner of Accounts and Deposits of the United States Treasury Department which performs the accounting functions with respect to funds appropriated by the United States Congress for Emergency Relief, however, has demonstrated that it is possible to maintain an accounting system in the Government which is comparable to systems of the largest and most progressive industrial corporations. Expenditures made under the Emergency Relief Appropriation Acts amounted to $11,924,829,853 as of January 31, 1940 and the tremendous job required for detailed accounting and reporting in connection with these disbursements was accomplished with speed, accuracy and efficiency having infinite lessons and applications for the whole Federal accounting system. The Federal Government in adopting this system of accounting for Emergency Relief expenditures has demonstrated that it is possible for it to maintain a system of accounting as efficient as private industry.