Knowledge that Transforms

Reviews the book "Glossary of Mediaeval Terms of Business: Italian Series 1200-1600," by Florence Edler.

Reviews the book "International Raw Commodity Prices and the Devaluation of the Dollar," by M.T. Copeland.

Abstract The article focuses on the Auditing Laboratory course offered at Columbia University for the past twenty years. The course prepared for accountancy students, provides a link between the theory and practice of auditing as a business clinic where students might work among the records of actual transactions. A number of sets of used account books form the basis for the course of study which has been given since the spring of 1915. These records present many interesting and complicated problems, and offer a wide scope for analysis and investigation. Questions and problems, to be solved only by an actual examination of these records and books, provide the basis of the student's work. This gives hint a practical working test under conditions which very closely correspond to those met in actual practice. Other problems taken from the actual experience of practitioners are given for home study and solution. These deal not only with auditing practice but also indicate the unusual situations which public accountants are expected to meet.

Abstract In examinations conducted by the various state boards, problems are often given requiring the preparation of a statement of application of funds. Where the data necessary for solution are few, problems of this type can be worked out without the use of working papers merely by noting the increases and decreases in the balance sheets at the beginning and end of the period. Where the transactions are numerous, it is common practice to resort to the use of working papers. The working-paper method is the plan usually followed in presenting the theory of the statement of application of funds to students by text books in accounting. The candidate for a certificate should not only know the principles necessary to solve a problem involving sources of funds and their application, but also be able to complete the assignment within the time limit. A statement of sources and applications of funds deals primarily with the items out-side of the current-asset-and-liability section of the balance sheet. The article presents, as an example, a problem given in the November 1925 examination of the American Institute of Accountants.

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

Reviews the book "Accounting Principles."

Reviews the book "The Use of Statistical Techniques in Certain Problems of Market Research," by Theodore Henry Brown.

Abstract The Securities Act of 1938, designed to compel full and fair disclosure of material facts relating to securities publicly offered and sold in interstate commerce, has been in operation now some 26 months, during which time approximately 1,700 issues of new securities have been registered with the Federal Trade Commission and its successor, the U.S. Securities and Exchange Commission (SEC). The Securities Exchange Act of 1934, which transferred the administration of the Securities Act from the Federal Trade Commission to the SEC, in addition to continuing the activities of the Federal Trade Commission relative to the Securities Act, is also concerned with the registration of security exchanges, the registration of securities on national security exchanges, and the making of studies and the promulgation of rules relative to certain practices looking toward the public interest and the protection of investors. The public accountant has a direct professional interest in at least one division of this Commission-the registration division. Since the registration requirements covering new issues under the Securities Act and securities listed on national exchanges under the Securities Exchange Act demand financial statements certified by independent public accountants, it is imperative not only that the public accounting profession be kept fully informed as to the statutory requirements as set out under the Commission's rule and regulation.

Abstract Accounting and teachers of accounting have been observing with considerable interest the steady development of business budgeting, especially during the past fifteen years. To many accountants this procedure seemed to be a misuse of accounting data and any such professed forecasting of business operations appeared to be unreliable, if not altogether impossible. As time went on, however, budgeting was thoroughly tried out and tested by management. Many experiments were made. Budgetary methods were studied. Cost accountants were open-minded and contributed generously to the development of its technique and procedures. Executives and financial accountants also tried their hand at the preparation of budgetary estimates. Cost accountants, like financial accountants, aim to interpret their own records. Cost accountants are now performing an increasingly large amount of the interpretation function of accounting, for the purpose of giving management promptly informational data on current operations. Standard costs and standardized revenues cannot be ascertained without interpreting fully the accounting records of past and present performance.

Abstract A C.P.A.-review course seems to be regarded generally as designed to meet certain needs of a relatively small group of students. It usually appeals to those who are interested primarily in professional accounting work and who hope to receive the certificate of certified public accountant, that magic parchment which, in the eyes of the layman, approximates a guaranteed income of anything above ten thousand dollars per annum to the holder thereof. One should include among these "professional students" the few who are interested in the executive accounting positions of certain of the larger corporations, the positions of auditor, comptroller, cost accountant, or budget officer. Students enrolling in the C.P.A.-review course must have a minimum of fifteen hours in prerequisite courses, elementary accounting, intermediate accounting, and cost accounting. It is customary for the student to have, in addition to the foregoing, credit in accounting systems, one semester of the year course in auditing, advanced accounting, and a second course in cost accounting. The basic textbook selected should provide answers and solutions in loose-leaf form.