Knowledge that Transforms

Reviews the book "A Report of Progress."

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.

Reviews the book "The Illinois Segment of the Nation's Economy for 1935."

Reviews the book "Security Analysis," by Benjamin Graham and David L. Dodd.

Abstract The article presents accounting case of Underwood Elliott Fisher Co. The enterprise, one of the leading manufacturers of business machines, was incorporated on March 8, 1910, in Delaware under the name of the Underwood Typewriter Co. On December 29, 1927, the name was changed to Underwood Elliott Fisher Co. The corporation manufacturers typewriters and flat-surface accounting and writing machines, including the Elliott Fisher with flat platen and the Underwood and Sundstrand with cylindrical platen. A subsidiary manufactures tally rolls, carbon paper, ribbons and other supplies for the machines of the parent company. The company's products are marketed primarily through branches in the U.S. and through dealers in foreign countries. During the past ten years the surplus accounts of the Underwood Elliott Fisher Co. has undergone two complete cycles involving transfers between earned surplus and capital surplus, arising in the first instance out of the virtual elimination of intangible assets from books of the company.

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.

Reviews the book "Effective Business English," by Robert Aurner.

Reviews the book "Introduction to Investment Analysis," by Kenneth Field.

Abstract The article focuses on the progression of accountancy in England. The English accountant is called upon to maintain during his professional career two sets of relationships. First, are those relationships, which are concerned with the accountant's immediate client with whom he comes in direct contact and by whom the accountant is hired. Such relationships are based upon contract and must consider the statutory provisions, which exist in reference to the audit. Second, there are intangible relationships, which involve indirect clients, those individuals whose presence is not disclosed to the auditor when he is preparing his statements and reports but of whose identity, at least as members of a class, he is aware. Direct clients include sole traders, partnerships and limited companies as well as all types of organizations, which according to English Law must submit their accounts to independent examination by auditors. Indirect clients encompass a much wider range of individuals, as they will include readers of financial statements and reports, potential investors, bankers, creditors, the public and the Government.

Reviews the book "Operating Results of Department and Specialty Stores in 1939," by Malcolm P. McNair.