Knowledge that Transforms

Reviews the book " The Great Enterprise," by Herryman Mauer.

Reviews the book "Elementary Accounting," by John Arch White and Marcus H. Bean.

This article focuses on new internal revenue act and the prosperity of the economy of United States. The devices to stimulate enterprise, employment and prosperity, five features are set forth. They are: the extension to two years of the carry-back for net business losses, the modifications in the taxation of dividend income received by individuals, the provisions for accelerated depreciation, provisions for deduction of research and development expenditures and the relaxation of provisions relating to the taxation of undistributed earnings of corporations. The author suggests that perhaps this new code should be looked upon as the first step, or the first few steps, toward a tax system that gives more attention to economic incentives. These features offer some promise of helping. It would be a mistake to regard them as anything more than helpers. They are only a part of an intricate tax system. The system itself is not an all-purpose economic tool, it is only one of several regulators in the economy.

The article presents cost concepts in reports for management purposes. The article explains the functions of the basic concepts described, which are, the indication of desired measures of cost and an inducement to the development of improved techniques and procedures for supplying appropriate cost information to management. It explains the statements of accounting principles underlying corporate financial statements which suggest concepts and standards in preparing accounting reports. The purposeful aspect of the term "cost" and the methods of measuring value releases have been discussed in detail with the uses of business cost reports. Costs for project planning have been described as estimates of future value releases. Expected cash outlay has been explained as the basis for estimating future costs of differential services. Adjustments for time, risk and uncertainty, pricing as a special area of planning, costs for period planning and control of current operations, Cost as a device for communication, motivation, appraisal have been discussed in detail. Cost reports for planning and control and costs for external purposes have been briefly discussed.

Reviews the book "Administering a Conversion to Electronic Accounting," by Harlord F. Craig.

Reviews the book "Examination of Insurance Companies," edited by Adelbert G. Straub.

Reviews the book "Accounting," by Leo A. Schmidt.

Reviews the book "Employment Opportunities for Women in Professional Accounting."

Reviews the book "Elements of Business Mathematics for Colleges," by Llewellyn R. Synder.

The industrial revolution with its division of labor, its competition, and its profit motive demanded forms of measurement which could not be found in the conventional single-entry or simple double-entry bookkeeping system. Stockholders, workers, and management demanded reports of operations and financial information on a current basis which had not been available before then. Governmental accounting has a great many basic concepts found in industrial accounting, although some of the major principles are completely different. In industrial accounting the measurement of profits is the deciding factor for a great many of the basic principles. Matching of costs and revenues probably is considered the fundamental concept of industrial accounting. No such concept exists in governmental accounting. Usually, revenues and expenditures do not have a direct accounting relationship in governmental administration. Most governmental units have a great many operational activities. One set of combined records is not sufficient to analyze these activities. Governmental fund accounting for each of these various operational activities has no counterpart in industrial accounting.