Knowledge that Transforms

Reviews the book "American Transportation in Prosperity and Depression."

Accountancy education, one of the newer fields of professional training, has developed rapidly in the United States in an effort to keep pace with the growth of the profession itself. If the accounting profession is to maintain its position of responsibility and respect, accountancy education must be maintained at a high level. The rapid growth of accountancy education in the past fifty years has resulted in a wide variety of types and levels of training. In 1945 there were at least 137 colleges and universities, recognized by state, regional, or national accrediting agencies, which had established schools of business. With the expanding scope of responsibilities of the accountant, the need is not for more accountants, but rather for more thorough and intensive preparation of those who do enter the profession. The State of New York has recognized the need for higher standards of professional preparation, when the requirement of graduation from an "approved" college was made a prerequisite to the CPA examination.

Reviews the book "Internal Auditing in Industry," edited by Victor Z. Brink and Bradford Cadmus.

The article focuses on the development of measurement and guidance techniques in the field of public accounting. In response to the expressed need for improvement of selection procedures, the American Institute of Accountants appointed in 1943 a Committee on Selection of Personnel. This committee was asked to investigate procedures whereby the general caliber of personnel in the profession might be improved. The early deliberations of the Committee led to the identification of four broad factors which may condition success in the profession. These four were general aptitude, technical competence vocational interests, character and personality. Vocational interest was the first field to be attacked experimentally. It was decided to experiment with the Strong Vocational Interest Blank, an immediately available test, rather than to attempt construction of a new test of interests. Through the cooperation of nearly a hundred accounting firms scattered throughout the U.S., Strong blanks were completed by more than 2,000 public accountants and returned to the project office for analysis. On the basis of the results a median profile was established for public accountants in general.

Reviews the book "Introduction to Accounting," by Robert R. Milroy and Geoffrey L. Carmichael.

Reviews the book "Lasser's Business Tax Handbook," by J. K. Lasser.

Reviews the book " The Economics of Agriculture," 2ed., by R. L. Cohen.

Gross profit variations may be computed to help in the determination of managerial efficiency and the proper amounts for managerial bonuses, and to help in planning and controlling profits. Common solutions are, first, report form, via formulas; and, second, tabular form. As usually presented, the latter shows variety and volume variations as a combined figure, requiring a separate schedule in report form to divide this into variety and volume variations. The procedure advocated herewith eliminates this extra schedule, and obtains separate variety and volume variations in the table itself, by adding one data column. The advantages of compactness and ease of understanding are fully retained; the change is solely one of technique. The first four columns in the table are used to compile the data required in obtaining the variations. The last five columns calculate and present the variations, from left to right. The first variation is the sum of the other four. A mathematical representation of this is mentioned in the article.

Reviews the book "C.P.A. Coaching Course— Problems, Solutions," Vol. 2, by Henry T. Chamberlain.

What is properly labeled "retirement accounting" is a doctrine of great importance. According to this doctrine no depreciation charges, as such, are set up annually on the books and no estimate is made of the periodic depreciation accrual. The significant point of time, in the view of its advocates, is the period when the asset is withdrawn from service. At this time the original cost of the asset is charged to operating expenses. Specifically the procedure sets up asset accounts to which the cost of all property purchased or constructed is charged at the time it is acquired. These charges remain on the books until property is abandoned and then the original cost of the asset is charged to operating expenses. In effect an account like "Retirement Expense" is charged when an asset account is credited for the amount of the original cost of the asset abandoned. The scrap value realized, if the asset is sold, is charged to cash and credited to "Retirement Expense." Or if the asset is "junked" in place of being sold, the charge is made to materials and supplies account and the credit to "Retirement Expense" account for the amount of the appraised value of the asset.