Reviews the book "Corporate Earning Power in the Current Depression," by William Leonard Crum.

Reviews the book "Trading on the Equity by Industrial Companies," by Charles L. Jamison.

Abstract The Securities Act of 1938, designed to compel full and fair disclosure of material facts relating to securities publicly offered and sold in interstate commerce, has been in operation now some 26 months, during which time approximately 1,700 issues of new securities have been registered with the Federal Trade Commission and its successor, the U.S. Securities and Exchange Commission (SEC). The Securities Exchange Act of 1934, which transferred the administration of the Securities Act from the Federal Trade Commission to the SEC, in addition to continuing the activities of the Federal Trade Commission relative to the Securities Act, is also concerned with the registration of security exchanges, the registration of securities on national security exchanges, and the making of studies and the promulgation of rules relative to certain practices looking toward the public interest and the protection of investors. The public accountant has a direct professional interest in at least one division of this Commission-the registration division. Since the registration requirements covering new issues under the Securities Act and securities listed on national exchanges under the Securities Exchange Act demand financial statements certified by independent public accountants, it is imperative not only that the public accounting profession be kept fully informed as to the statutory requirements as set out under the Commission's rule and regulation.

Abstract In any consideration or discussion of the methods of teaching in Auditing it would seem that the question of paramount importance, or at least the one causing the most difficulty, is what might be called one of realism or practicability and the developing in the student of the feeling that the course is not just a theoretical course but that it is tangible and practical and has a direct relationship to actual business procedure. There is no particular difficulty in connection with text material covering the theory of auditing. There is an overabundance of printed material explaining what to do in the course of any type of audit engagement, although much of this material consists principally of statements as to what the auditor should do. The chief difficulty is in giving the students an understanding and appreciation of the practical problems of audit procedure and the developing of a sense of realism in the course and in the work. The ideal and most satisfactory method of handling the situation would be to have actual accounting records and to have a wide enough selection to illustrate the variations in form and procedure that would be encountered in actual business and a sufficient number of sets of books so that students could work on these records individually under the supervision of the instructor.

Abstract In the teaching of accounting systems one finds that it is often difficult for the student to see the practical application of the accounting theories discussed in the classroom. No doubt this is due largely to the lack of practical experience on the part of the student. Some schools overcome this handicap by arranging for part time work in the accounting departments of local business concerns. Other schools find this arrangement impossible, due to the scarcity of such business concerns or the general policies of the college or university. This lack of experience may be at least partially overcome by means of the written report, which may be used to supplement the course in accounting systems. In this report the undergraduate may select a business concern either in the college community or elsewhere, usually near his own home, and make a first hand study of the accounting system of that business. The outline is given to the student early in the semester and soon afterwards he is asked to name the kind of business in which he is interested and on which he would like to make a report.

Abstract Regardless of the ultimate position, which the National Industrial Recovery Act may occupy on the political horizon, it has already succeeded in making the business world increasingly conscious of cost accounting. There is no reason to expect that the ground gained will ever be lost and every reason to believe that through trade associations and similar organizations cost accounting will gain additional importance in the United States' national business life. Therefore it is advisable to survey the cost courses given in the universities and colleges of the country to see whether they are designed to give the student the proper training in cost accounting. Probably it is safe to say that when the instructor approaches the cost course with such an attitude, the subject continues to remain a mystery to the student. In reality the study of cost accounting is simply an expansion of the study of one of the functional groups presented in financial accounting, the manufacturing function. In cost accounting the student learns how the information, which he used in financial accounting is obtained for a manufacturing concern.

Abstract Value has long been the central theme of economic philosophy. Value is a dual concept rather than a simple one. Value-in-use comes to be an expression of the direct utility present, and value-in-exchange comes to be an expression of the marginal utility. In accounting, "cost versus value" is, in fact, "value-in-use versus value-in-exchange." The former seems a natural material for accountants to treat, for the primary function of accounting is to record cost-price as it enters an enterprise and to trace cost-price through many intricate conversions until in the end it leaves the enterprise in one form or another. The latter seems an unnatural material for accounting because value-in-exchange is essentially subjective and very fleeting at best. It would seem, therefore, that accountants would have a direct responsibility for correctly disclosing value for use but very little responsibility for exhibiting an estimate of value for exchange. The early choice of the balance sheet as the main statement tends to place finance above operations, and finance, in turn, looks upon value-in-exchange as basic.

Reviews the book "Principles of Foreign Trade," by C.E. Griffin.