This article says that an American, E.G. Folsom, made a praiseworthy attempt two generations ago to show the student that bookkeeping procedures reflect rational purposes and implement reasonable and understandable objectives. His pedagogical intention dearly was one of easing the learner's task by teaching him the thought processes behind the technical features of double entry. In this approach he displays a penetrating insight into the weakness of learning a technology by memorizing rules for dealing with typical situations. Perhaps Folsom was Conditioned by his education to attempt the broadening of instruction in bookkeeping. He signed his book as a master of arts and displays an acquaintance with the economics of his day far beyond that reflected in most contemporary text books on bookkeeping. One of Folsom's aims in writing his text, like that of many other authors, was to teach the student how to analyze transactions into debits and credits for entry into double entry ledger accounts.

The article presents a case study of price-level adjustments to the financial reports of a large department store. The method outlined is designed for a study of a twenty-year period. The results of the adjustments to dollars of constant value revealed the expected distortions in periodic income reporting. In as much as the general price level rose during the year ended January 31, 1947, the adjusted balance sheet reveals that the non-monetary items, such as inventories, land, and depreciating assets, exceeded the historical costs by material amounts. In the proprietorship section, the value of the stockholders' original investments in common stock was increased by $6,368. The retained earnings are not as high as reported by $3,621, due to the continual overstatement of "real" income during the inflation years. The net income after taxes was distorted in the annual report by almost a half million dollars. In addition, an unrealized loss of $946 was omitted entirely from the report to stockholders. It appears that this type of information would have been very informative to existing and prospective stockholders.

Over-all comparisons of the size of state expenditures need to be supplemented with a description of the relative share of financial responsibility borne by state and local governments in each state. Cost accounting should provide a variety of unit data, like, how much it costs to educate a child, to maintain a patient in a hospital, to build a mile of concrete road, to process a tax return, to patrol 100 miles of highway, etc. Those unit data have of course, only limited value for interstate comparisons until quality standards and uniform methods of cost accounting are set up. Most states depend for their major improvement programs on the investment market. It would be in the states' interest to make available to investors the kind of information which they are used to getting from other applicants for funds. The National Association of State Budget Officers recognizes the need for comparative figures on public revenues and expenditures. The pioneering work in this field by the Bureau of the Census represents a step in the right direction.

Reviews the book "Cases and Problems in Investments," by Francis J. Calkins.

Reviews the book "Practice Set in Cost Accounting," by John W. Ruswinckel.

Reviews the books "The American Association of Public Accountants, Its First Twenty Years," compiled by Norman E. Webster and "English Accountancy, 1800-1954," by Nicholas A.H. Stacy.