Knowledge that Transforms

Abstract Reviews the book "Elementary Cost Accounting," by George Hillis Newlove and S. Paul Garner.

Abstract Reviews the book "The Legal Aspects of Business," by Harold F. Lusk.

Abstract The article focuses on the problem of what constitutes the unauthorized practice of law by accountants in tax matters in the U.S. Certified public accountants and attorneys have been attempting to delineate what constitutes the legitimate bailiwick of the accountant since 1935. There has been a failure to produce any satisfactory solution for either of the professions. This professional controversy was intensified by an action brought in the Supreme Court of New York by the New York County Lawyers' Association to punish for contempt and to enjoin the alleged unlawful practice of law by one certified public accountant. The courts have been often confronted with the vexing problem of when an accountant illegally practices law and their decisions present divergent views. Holdings favoring accountants were rendered under the following circumstances. Federal Courts have also passed favorably, from the accountants' view, on the question. It was held that recovery could be had in contract, where tax accountants agreed to prosecute taxpayer's refund claims before the Commissioner of Internal Revenue Service.

Abstract At present, no balance sheet is prepared to show the financial condition of the Federal Government as a whole or of any of its agencies other than those operating business-type enterprises. There are many reasons for the lack of balance sheets but the two principal ones are (1) the use of the cash basis of accounting and (2) the failure to recognize fund distinctions. The purpose of this article is to outline briefly a system of fund accounting for the Federal Government. Such a system will make possible the preparation of fund statements that will reflect the true financial condition and operations of the Government. Although the system will enable the preparation of both fund balance sheets and fund operating statements, this article is limited to balance sheets. The Federal Government should establish three types of funds: (1) a General Fund to be used to account for all assets or other resources owned by the Government, (2) Trust Funds to be used to account for assets held by the Government in the capacity of agent or trustee for others; and (3) Business-Type Funds to be used to account for the transactions of business-type enterprises.

Abstract Reviews the book "Monetary Management," by E. Sherman Adams.

Abstract Reviews the book "Advanced Accounting," by Wilbert E. Karrenbrock and Harry Simons.

Abstract Reviews the book "Business Law—Text and Cases," by Gerald O. Dykstra and Lillian G. Dykstra.

Abstract Reviews the book "Business Law," by Thos. Conyngton and Louis Bergh.

Abstract Reviews the book "Accounting for Colleges and Universities," by Clarence Scheps.

Abstract The high school student comes to college with the highest expectations only to be confronted in many cases by a self-conscious, ill-at-ease, and nervous instructor who tries to impress the class with all he knows about accounting rather than to make the subject matter comprehensible to the student. It is quite possible that potential accountants are frightened out of the field by the instructor in principles who points out how "tough" accounting is and how few can pass the first course. If the mastery of accounting principles is difficult, it is the shortcoming of the instructor who fails to simplify his presentation, the merit of the text used notwithstanding. The three major factors contributing to the plight of accounting principles are (1) the low esteem in which the introductory courses are held by the staff, (2) the fallacious assumption that anybody can teach principles of accounting, and (3) the faulty departmental organization. In general, there is no prestige attached to the principles course because the higher ranking and higher paid members of the staff teach only advanced courses. What is the way out of the dilemma which is unfair to the beginner in accounting and unjust to the profession? First of all, the problem has to be recognized and enough courage summoned to take corrective action. The problem is to build up esteem for the introductory courses, and to train and supervise closely the new instructors as well as to delegate authority over these courses to senior staff members.