The article focuses on the problems of methodology in accounting theory and principle. If a general methodology in accounting could be agreed upon, theories developed within this framework would stand a better chance of gaining widespread approval. As it is now, both the ends and the means are constantly in dispute. In accounting, there has been a long-standing belief that accounting is an art which does not lend itself to formalization. This attitude is being challenged increasingly. The effort towards formalization must face the issue of improving methodology, otherwise researchers in the field may be working at cross-purposes. Here the author discusses the difficulties which arise when accounting theory is developed without sufficient attention to the conceptual framework, and shows how theory formulation in accounting may progress by adherence to a more formal general methodology. He remarks that lack of methodology in accounting theory in the past has resulted in poor definition of terms.

The economic aspirations of the less-developed nations are a present and significant fact of the contemporary economic scene. No longer are they willing to remain as mere exporters of primary products to industrialized nations. A professor has correctly indicated that, from a historical viewpoint, accounting development is an evolutionary process dependent upon, and interwoven with, economic development. The social function of accounting, to measure and to communicate economic data, cannot be considered simply as the effect of economic development, but should be considered a valuable tool for promoting the development process. Accounting education, however, does exist in Latin America. All countries in the area with the exception of Honduras have specialized or university education in accounting. There is also an increasing tendency to incorporate accounting education in university curricula. With the exception of Honduras, Paraguay and Venezuela, independent professional practice is controlled by law. Individuals without a license are prohibited from practicing independently. Professional organizations exist in all of countries and, with the exception of Brazil, Guatemala, Paraguay and Venezuela, each country has issued official codes of professional ethics.

I. Introduction, 240. — II. Price variations models of oligopoly, 241. — III. An experimental oligopoly market, 242. — IV. Hypotheses, 248. — V. Procedure, 249. — VI. Results, 251. — VII. Discussion, 257. — VIII. Summary and conclusions, 259.

This article reports on a study of the extent to which certain specialized accounting statements presented in accounting textbooks are actually used in practice. To determine the extent of use and form in which these statements are prepared, fifty bankrupt or liquidated companies in the six-year period were selected. These companies were contacted by mailed questionnaire. Each questionnaire was accompanied by a typical textbook model of the appropriate specialized accounting statement. In addition to the questionnaire information, examples of statements and numerous comments were also received. From these sample statements and comments it was clear that when statements are prepared in cases of bankruptcy or liquidation, they generally take on the configuration of the conventional balance sheet. It was concluded in the study that statements prepared for bankruptcy, liquidation, loan or credit purposes are rarely found in practice in the same form as is conventionally depicted in accounting textbooks.

Reviews the book "The Use of Accounting Data in Decision Making," edited by Thomas J. Burns.