Journal Article Welfare Economics and Rationing Get access W. C. Haraldson W. C. Haraldson New York City Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 58, Issue 1, December 1943, Pages 146–148, https://doi.org/10.2307/1885762 Published: 01 December 1943

C. Lowell Harriss, Revenue Implications of a Progressive-Rate Tax on Expenditures: A Study of Selected Aspects of Irving Fisher's Proposal to Eliminate Savings from the Income Tax Base, The Review of Economics and Statistics, Vol. 25, No. 3 (Aug., 1943), pp. 175-191

Abstract This article focuses on the structural fundamentals of financial statements. Financial analysis sometimes goes astray in assuming that the balance sheet at the year-end represents the average condition prevailing throughout the year, a condition which in some respects is usually not the case. An average balance sheet for the entire year would provide a better basis of comparison. Consistent treatment of the various classes of elements in all financial statements would soon lead even the casual reader to a better appreciation of the basic financial aspects of business activities and their results. The primary relationship expressed in accounts is that of equality. Entries are equations, ledgers "balance." Accounting starts, then, with the primary proposition that this equals that. Naturally many accounting statements stress this feature of "equality of factors." In the balance sheet attention is directed to the fact that property is equaled by ownership. A cash statement may show that the opening balance plus receipts equals disbursements plus the closing balance.

Abstract Accounting is such a field, and, like other fields of knowledge and of work, it stands to benefit from a continuing exchange of views. The range of the exchange need not be confined to the results of extensive research, or to the analysis and reporting of complex experience. Exchange of opinions can also make a contribution. What one thinks at the moment need not commit him irrevocably to a certain position, nor is his idea necessarily put forward with the purpose of securing converts to the view presented. A good perspective on professional attributes would be helpful, for example, whenever the problem to be faced had to do with setting and maintaining standards of admission to the profession and standards of professional practice after admission. Good perspective would also be useful whenever organization activities or educational programs are under consideration. When and if the profession might be under fire of criticism, perspective would be indispensable. A number of tests could perhaps be devised and tried on experienced accountants in an experimental way. Those tests that seemed most revealing could then be subjected to further observation by using them experimentally with young men recently accepted for professional work and still under training and scrutiny, and by using them experimentally upon college students who wish to major in accountancy and may later be further observed in class and office.

Abstract This article talks about some reports, which has been published in the April 1943 issue of the accounting journal "The Accounting Review." As to committees, it seemed advisable to appoint territorial membership solicitors to use a printed statement of Association objectives in a persistent campaign. Opinion at the meeting of May 8, 1943 was favorable to attempting some research looking toward a statement of cost accounting principles to be formulated by a special committee. Other research projects, if any such appear, can be given to other special committees to study. After some experimentation along these lines for a while, it would be necessary to decide whether research should be continued by special committees, by designated standing committees, or by research directors. Other matters of Association policy will probably need to be studied later also, when orderly legislation is once more possible. The established election procedure could not be followed in 1942, and emergency action was taken as reported in "The Accounting Review," for January and April, 1943.

Abstract Reviews the book "Accounting Fundamentals," by Richard E. Strahlem.

Abstract In this article the author presents an interpretive observation of the examination questions in auditing. He analyses, whether the examination questions changed as auditing has developed during the past forty-five years. According to the author, the observation of the studies conducted in this field shows the tendency for questions on auditing procedure to grow less prominent. Auditing theory and non-auditing questions increase. The ranking of question types in these studies also provide some suggestions of the change. The first ranking item in the earlier period was number ten in the list for the lastest period, the second later became fifth, the third was seventh, the fourth practically disappeared later, the fifth item became fourth, and the sixth became eleventh. It is clear in the studies that changes are taking place. Broad general questions on the nature and purpose of auditing are of late being replaced by questions that are more pointed and specific. Earlier auditing examinations made frequent use of questions on the theory of accounts. The trend has been away from this type of theory question and toward theory as it involves accounting statements.

Abstract The fact that the complicated business of making war can be epitomized for certain purposes into a few guiding principles suggests that accounting also may rest upon certain leading ideas which we may call principles. The military strategist would not thumb through a pocket list to choose the principle to be applied next to his situation. Neither would an accountant. Principles probably serve their purpose best after their essence and their interrelations have been made so thoroughly a part of a man's thinking processes as to have been forgotten as verbal propositions. In times like these, generalizations about the science of making war are interesting for their own sake to laymen. But they can be of more than passing interest to accountants because they illustrate so well the useful art of generalization. About a year ago a compact summary of the principles of war was published, as of October 1943. The nine principles stated in the summary are briefly summarized in this article to give further emphasis on the factor of interdependence.