Abstract In this article the author explains, illustrates and compares the mathematical computations and resulting valuations of three primary methods of accounting for unavoidably spoiled units in process cost industries. According to the first method, spoiled units are assumed to be taken out of production at the start of operations. In second method, spoiled units are assumed to be discovered by inspection after they are completely processed. In the third method, spoiled units are taken out of production when spoiled and loss on spoiled and loss on spoilage treated as overhead of the department in which the spoilage occured. Under the first method, the spoiled units are weighted by zero and loss on spoilage is allocated beteen the units completed and the units still in process on the basis of the equivalent production. Under the second method, the spoiled units are weighted by unity and the units remaining in process are costed as though there were no spoiled units thereby making the good completed units absorb all spoilage loss.

Reviews the book "Quasi-Reorganization," by James S. Schindler.

Reviews the book "Accounting For Intra-company Transfers."

Abstract The article discusses modifications made to a family tree introduced by scholar Lewis A. Carman in 1932. He used the tree to analyze the use of equity ratios in distributing the combined capital stock and surplus on the balance sheets of companies affiliated by both unilateral and bilateral common stockholdings. The family tree is adapted very slightly to have it obey some modem principles of family tree construction like arrows point with the force of authority, percentages of ownership and separate family trees are made for each class of stock. In 1948, the use of equity ratios was extended to the preparation of income and surplus statements involving both common and preferred stockholdings, and a mechanical method of calculating the equity ratios was introduced for use after the ratios of the bilateral groups have been computed. In 1949, a new formula for computing the equity ratios for bilateral stockholdings was developed in an advanced course in consolidations at The University of Texas by Myles Joseph Aaronson. The new formula is very simple to use because the determinant aspects cancel out leaving an equation, which enables anyone to handle the most difficult cases of mutual stockholdings, by using only simple arithmetic processes.

Abstract Reviews the book "Materials on Accounting," by Robert Amory.

Abstract As the orthodox realization and liquidation account does not adequately present the affairs of a company under liquidation in bankruptcy or one being reorganized under a receiver, repeated attempts have been made to improve the reporting for such concerns, as of January 1946. Some of these attempts have adapted the ordinary interim work sheet by inserting additional columns so that the trading transactions may be distinguished from the non-trading transactions. The other method of attacking the problem adapts the principles of the articulation statement in that the money amounts involved are sorted into columns according to the types of transactions and sorted to lines according to the titles of the accounts affected. The article presents some general rules for the preparation of columnar realization and liquidation statements. First rule is to classify transactions according to the columnar headings and determine whether the entries should be recorded as debit or credit according to the effect the transactions have in the accounts named on the lines. Also, record all cash collections as realizations of assets and all cash disbursements as payments of liabilities.

Abstract The article presents an interview with the author on the teaching of cost accounting. The article also presents comments of scholar Gould L. Harris on answers given by the author. In response to a query about the future use of cost accounting by students, the author replied that during the last ten year I have made a practice of asking my cost accounting students whether or not they expected to work in a factory after graduating. Less than five percent replied in the affirmative. This percentage is all the more important because most of my students have been residents of Washington and Baltimore. Therefore, it can be stated that the main purpose of the Cost Accounting course is not to directly prepare students for future work in factories. Indirect uses students will make of cost accounting seem to be chief reasons for giving the course. All students will use ideas that are given of, accounting controls, systems of internal check, computing costs according to suitable bases, departmentalization of expenses, detailed interlocking of paper work, adaptation of paper work and accounting routine to meet local company's condition, preparation and use of budgets, use of budgetary reserves and preparation and use of accounting reports.

Abstract The purpose of the present paper is to ascertain just what graduate courses in accounting are offered by the universities listed by the collegiate department of the United States Bureau of Education as giving graduate work in applied economics. In order to simplify the figures, no distinction is made between a term course and a semester course. Likewise, no distinction is made between courses given only to graduates and those given to both graduate and undergraduates; strictly undergraduate courses are ignored. Data presented in the article shows that the graduate courses in accounting are largely concentrated in the basic subjects. While twenty-one different accounting studies are given, 71.7 per cent of the courses are given in the subjects that a student already familiar with the elementary principles of accounting must pursue. In order to become a professional accountant; and although prospective Certified Public Accountants (C.P.A.) candidates form only a small portion of the total number of accounting students, it still is advisable to offer adequate preparation for the C.P.A. examinations. The relatively weak showing of the subjects not absolutely needed in the professional accounting curriculum is due to the fact that accounting must be studied in logical sequence.

Abstract The tenth annual meeting of the American Association of University Instructors in Accounting was especially noteworthy because of the able papers given on the subject "Research Work in Universities." Inspired by these papers the present writer decided to ascertain approximately what graduate work in applied economics the American universities were doing. As there were no data available on this subject, a survey was started. This paper is the result of the survey conducted by the Association. The basic courses in commercial law are so fundamental that practically all graduate schools of business offer them. The commercial law courses are 8.4% of the total applied economic courses in non-urban schools and 6.2% in urban schools. This variation is due to the difference in the total number of courses offered in non-urban and urban schools as the number of commercial law courses offered is practically constant. The unusual number of commercial law courses offered at American University and Pennsylvania University is doubtless due to local conditions, the excellent standing of the graduate law school at the former and unusual complexities of the State law code at the latter. Business management ranks first or is tied for first among the applied economic groups in five out of the twenty-seven schools.

Reviews the book "Outline of Petroleum-Industry Accounting."