Knowledge that Transforms

Reviews the book "Monthly and Yearly Standards of Performance for Department Stores: 1930," vol. 3, no. 4, by Edgar H. Gault.

Abstract Good accounting records which show exactly what has happened in a given business are of interest as historical documents, but for years it has been apparent that they alone are not sufficient for the management under the intensely competitive conditions which have to be faced. The situation in industry following the World War made it still more noticeable that well- prepared plans for the future, based on accounting records and all other pertinent material, were fully as necessary as a knowledge of what had passed. The budget, which had been used in public finance and by some few businesses, now attracted more attention from industry than ever before. Indeed it was even hailed as a thing entirely new which would prove to be a panacea for the ills of business. During the past decade its development has been fairly rapid and widespread. The industrial groups whose trade associations have been most active in promulgating the budget idea have made the most progress in budgetary control. Some concerns still have no formal budget, others attempt to budget only part of their activities, whereas still others endeavor to budget all operations in detail.

Reviews the book "New York Laws Affecting Business Corporations," 12th ed.

Reviews the book "A Demonstration of Ratio Analysis."

Reviews the book "Interpretations. Walter Lippmann," edited by Allan Nevins.

Abstract For problems involving the admission of a new partner to a firm, when the books of the old firm are to be continued, two methods are suggested by different textbooks. Often the two accounting exchange methods are offered as alternatives. These two methods have been illustrated in the article. It can readily be seen that each of these solutions give effect to the conditions of the problem. The discussion makes it evident that the two solutions offered to the problem are not, in a true sense, alternatives. The selection of one of the two methods cannot safely be left to the whim of the accountant who drafts the entries. The principals, who do not at the time en- joy a community of interest, should be consulted and due consideration should be given to their respective equities. As a general rule it seems that there is more reason for setting up goodwill when the new partner is admitted rather than to credit the old partners with a bonus of a part of the new partner's investment. It is true that goodwill which had not been purchased by the firm would be set up on the firm's books.

Reviews the book "Encyclopedia of Banking and Finance," by Glenn G. Munn.

Abstract Accounting does not occupy the honored position in the French system of education which falls to its lot in the United States. The French make but little provision for it and do this in what appears to some a grudging manner. The French schools undertake the preparation of young Frenchmen and Frenchwomen for citizenship in a highly centralized democracy with aristocratic and monarchic traditions. The French school system is under the direct supervision and control of the Ministry of Public Instruction and comprises two classes of establishment: public and private. The professors in these institutions are appointed by the national or local authorities after a competitive examination, while the nomination of professors by the private schools is subject to the approval of the Minister of Public Instruction. Accountancy is not taught there by what they might term the textbook method, so popular in many American institutions of higher learning. A combination of lectures and laboratory practice is used. The lectures are of a high calibre viewed from both form and content and if taken down as delivered, would form a respectable manual for the course.

Reviews the book "Forecasting Business Cycles," by Warren M. Persons.

Reviews the book "The Cultural Significance of Accounts," by D.R. Scott.