Great changes are taking place in accounting. A rapidly changing business community is demanding that accountants recognize the new "facts." Meanwhile leading accountants are attempting to meet the demands within the same old framework of double-entry bookkeeping. The time has come to evaluate present day accounting in its entirety. It is true that some attempts are being made to modify "accepted practice." The recent and numerous bulletins of the American Institute of Accountants illustrate this clearly. Such areas as income tax treatment, composition of current assets, contingency reserves, and net profit are far different than they were a decade ago. Even now tremendous pressure is building up to change original cost and depreciation accounting. Most of the pressure is coming from the business community. Accounting statements are expected to indicate the economic realities of a business unit. It no longer satisfies the accountants' audience to say that things are in accordance with certain principles, consistently applied, etc. People want balance sheets and profit and loss statements to tell the real story.