Knowledge that Transforms

Reviews the book "The Transportation Crisis," by G. Lloyd Wilson.

Abstract This article discusses the economic benefits of capital. The preservation of a proper distinction between capital and income is the fundamental problem of accounting and the aspects of capital are a prerequisite to sound accounting development. A distinction between the capital that serves as an agent of production and the capital that serves as a means of directly satisfying the wants of man is considered desirable, the former may be called "production capital", and the latter, "consumption capital." Modern methods of business, accounting, and finance, as previously suggested, requite all capital to be measured in the common standard of value used throughout the economic community. The substance of capital is usually measured with reference to the ability of capital to command some economic goods; and this ability depends upon the relationship between the monetary amount of the capital and the monetary amount of the particular economic goods. When the valuation procedure selects productivity as the principal explanation of the existence of capital and then values the capital at the present worth of the estimated income obtainable, the process is frequently called capitalization.

Abstract The article focuses on the courses in accounting systems. The course in Accounting Systems of Constructive Accounting has long proved a troublesome one. Some instructors have steered a wide course around it, convinced that other accounting courses supplemented with practical experience is sufficient. Others believe that a great deal more can be done through the development of a systems course or courses. The development of machine methods has brought out a mass of material which accounting instructors cannot afford to ignore further. No single textbook has been of great assistance to date, for a number of the instruction state that no text is used in the course. The content of individual courses necessarily varies but from a summary of such content from a number of courses the prevalent aims of the instructors are made evident. One of the principal difficulties encountered in the organization and teaching of the course is the old problem of combining theory and practice. But, still it emerged as a popular course in accounting.

Reviews the book "Economic Tendencies in the United States," by Frederick C. Mills.

Reviews the book "Advanced Accounting," by Frank H. Streightoff.

Reviews the book "Gold and Monetary Stabilization," edited by Quincy Wright.

Reviews the book "The Fight for Financial Supremacy," by Paul Einzig.

Abstract The article presents information that bright students at the University of Illinois, in the United States, are encouraged to do a portion of their study without class room attendance. This may be done at the student's option either by preparing a written thesis or by doing special reading. The senior thesis option has been available for about ten years. It is required of seniors who expect to be graduated with High Honors but is open to others by special permission. The intention is that the student will make an intensive examination into some topic of personal interest; perhaps it will be in regard to some subject matter which was but briefly treated in one of his classes, frequently the study is more directly related to his own specific business intentions or to some family enterprise. The administration of the work is simple for after the student has selected his topic he works individually with the faculty man who is thought to be best acquainted with the field of his study. The few conferences which are necessary regarding sources, outline and occasional "snags" are no great burden on the teacher and reading the finished work is more interesting than otherwise.

Abstract The article focuses on accountancy under economic self government. There is general discontent with the economic system, with the political system, and with the relation between the two. There is also general aversion to political and bureaucratic government interference in economic affairs. A National Economic Council is often proposed. But usually this council is conceived as a superstructure to be imposed upon the existing national economy. A National Economic Council to fit the American idea therefore should receive its powers, duties and responsibilities from the business system which it would represent. Such a body would not be a revolutionary proposal; it is modeled upon the system long accepted by the American people in political matters. Through the channels of this organization accounting information would flow from the business enterprises, through the institutes and federations of accounting, to the National Economic Council, particularly its Division of Accounts. This information would provide the basis of a national economic balance sheet and economic budget plan.

Abstract The article focuses on importance of clarity in balance sheet display. One of the most important pieces of work which a public accountant is called upon to perform is the preparation and analysis of balance sheets and financial conditions. By no means is this the mere listing of certain assets and liabilities. It resolves itself into a matter of judgment in arrangement and valuation, and judgment is often a matter of one's experience in judging and noting the results in previous situations. The matter of prime importance to consider is the type of person who will be called upon to read the balance sheet. In a recent examination, it was discovered that the management had been giving itself some systematize, but serious-minded kidding by working on the assumption that installment accounts receivable were not subject to the need forbad debt reserves. This is a matter of problem of valuation. According to the author, balance sheets must be prepared for the benefit of the reader and must be grouped to give him the benefit of the most accurate information available, in the most readable form. It should give him all of the facts and the facts should be stated clearly.