M. L. Balinski, W. J. Baumol; The Dual in Nonlinear Programming and its Economic Interpretation1, The Review of Economic Studies, Volume 35, Issue 3, 1 Jul

Journal Article The Structure of Utility Functions Get access W. M. Gorman W. M. Gorman London School of Economics Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 35, Issue 4, October 1968, Pages 367–390, https://doi.org/10.2307/2296766 Published: 01 October 1968

Abstract The CPA's attest function has customarily involved primarily the rendering of opinions on financial statement presentations in reports to investors and creditors. Its principal application has been the expression of opinions on the fairness of the conventional financial statements included in corporate annual reports. The auditor's ability to verify information presented outside the financial statements would appear to be the primary determinant of whether his attest function could be extended to include that information. Verification is essentially a matter of obtaining sufficient evidence to provide a rational basis for judging the reliability of assertions made by others. The ability to obtain sufficient evidence to afford a reasonable basis for an opinion regarding any information, financial statement or otherwise, will vary, of course, depending upon circumstances in a particular examination and the professional competence and judgment of the auditor performing the examination. Some of the non-financial statement information is frequently presented for a period of two years or more. CPAs already render opinions in many cases on data covering two years or more. Before a CPA can render an opinion on a company's basic financial statements, he must determine whether those statements present fairly the company's financial position and results of operations.

Reviews the book "Divisional Performance: Measurement and Control," by David Solomons.

Abstract The accounting profession and accounting education have increasingly become more specialized, and necessarily so. The field is too large and the material too complex for accountants to be true experts in every area. The operations research area is perhaps analogous to the area of federal income taxes. Each accountant must have a certain minimum knowledge about taxes, but people need not know all of intricacies of tax law. The first big problem to be overcome is fear of tackling the area at all. As indicated in the allegory, the two indispensable aids in accomplishing this end are an understanding of college algebra, and an understanding of elementary statistics. To become a real expert in linear programming would require a commitment of time and effort which is probably not justified, but to become thoroughly conversant in it and comfortable about it, is not such a big task, and will provide with a solid springboard for tackling the rest of the quantitative field. It seems that this approach is better than starting out with a survey of the entire operations research/quantitative methods field on a general level.

Abstract This article focuses on designing consolidated position statements in a tabular format to make the study and teaching of accounting courses easier. By holding some factors constant and varying certain selected conditions-investment cost, percentage of ownership, and time it becomes possible to effectively illustrate some of the primary relationships between the selected conditions and the three special items of goodwill, minority interest, and retained earnings as they are presented in consolidated statements of financial position. The exercise provides twenty-four different sets of conditions. The necessary data can easily be mimeographed on a single page for classroom use in the following manner. The completed table can also be used for the purpose of reviewing the patterns of changes which take place in the position statement amounts as a result of changes in the selected conditions. This tabular approach helps the student recognize some of the primary relationships between investment cost, percentage of ownership, and time, and consolidated goodwill, minority interest, and consolidated retained earnings.

Journal Article Spectral Analysis of the Term Structure of Interest Rates Get access C. W. J. Granger, C. W. J. Granger University of Nottingham Search for other works by this author on: Oxford Academic Google Scholar H. J. B. Rees H. J. B. Rees University of Nottingham Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 35, Issue 1, January 1968, Pages 67–76, https://doi.org/10.2307/2974408 Published: 01 January 1968

Abstract The article focuses on some new approaches to risk. A great deal can be said on the subject of risk and how it might be identified, measured and evaluated. It is not the purpose of this article to distinguish rigorously between different categories or dimensions of risk. Rather the author conceptualizes "risk" as emerging from the fact that some of the information, which is pertinent to a decision, can at best be known only in the form of specified probability distributions. The resulting possibility of deviations from any estimate of the events governed by such probability distributions is then the basic phenomenon, which they shall suppose gives rise to risk. Of course, more than one probability distribution may be applicable and a combination of these distributions may then also require consideration prior to effecting choices between investment alternatives. This kind of phenomenon can supposedly be handled, at least in principle, by suitable theorems or algorithms in probability and statistics. At any rate, given this assumption, one version of a more classical approach would next proceed to reduce each alternative to a single-number basis for comparison. In more sophisticated analyses this might be accomplished via a "utility function" approach.

Introduction, 152. — Method of analysis, 153. — Determination of returns to human capital, 156. — Results of the study, 158. — Conclusion, 160.