The thought processes inherent in creative development of accountancy require definition. In his daily practice a professional accountant must devise practical solutions, and always be concerned with the impact of his actions on both clients and colleagues. But productive thought on a newly-conceived hypothesis may be hampered by such professional considerations. Technical face-lifting may be the principal result in these circumstances. Thus the professional man's dilemma is the need to be concerned simultaneously about the meaning of his work, and to face the daily chore of problem-solving with realism. The notion that basic research can be productive without the presence of predetermined technical objectives is just as applicable in accountancy as in any other art or science. Purposeful theorizing or abstract analysis is part of the intellectual responsibility of the professional man. The creative accounting approach to problem-solving starts with a belief that the objectives of any analysis dictate the nature of the input and output valuations adopted. Creative thinking in accounting research leaves room to wonder whether the proven usefulness of extant accounting concepts and technique precludes the possibility of devising a better system of accounting measurement and analysis. Creative accounting can provide the unrestricted search requisite to such improvement.

Abstract Accounting instruction must convey to students as many progressive ideas as possible. Simultaneously, time should be taken to show traditional practices more likely to be found in business. Thus overemphasis of new theories that limits or excludes discussion of older business procedures defrauds the student. He may be bewildered when the accounting methods which confront him in his first job are not what he has been led to expect. Unbalanced emphasis in the other direction is even less desirable for the new accountant will not have had a chance to develop in college the background for the creative thinking which can make possible his advancement to executive responsibility. A striking example of the necessity for a balanced treatment of accounting ideas is in the teaching of the net and gross price methods of recording purchases and sales. Fairly impartial presentation of these opposing methods can be achieved in a fifty-minute class period. The simple comparative illustration has been effective in presenting comprehensively both methods despite the writer's admitted preference for the net price method.

Abstract This article focuses on the working capital. The amount of working capital of a business is not simply a passably interesting item, font is a figure which can be put to dynamic use in the bands of capable management. When an attempt is made to relate current items to the operating cycle of a business, working capital becomes a vital financial guidepost. The utility to management of the working capital concept lies in analysis of working capital and in interpretation of the reasons/or changes in each of its component parts. The effect of each factor in the composite working capital figure is reflected in the whole so that the implications of individual debits can be considered of view. The initial working capital of a business is the fund of free capital placed in the hands of management by investors. It is the responsibility of management to commit these funds to the productive purposes for which the business was formed, and, at the end of the operating cycle, to disinvest the funds originally committed into new free capital available for recommitment to new productive purposes. Fund disinvestment is accomplished through sale of the end product of a business firm and settlement of the receivable then created by cash payment by the customer.