Reviews the book "Book-keeping and Accounts," ed.15.

Although double entry bookkeeping has existed for several centuries with very satisfactory results as a recording medium, it has been given a severe test during the last 60 to 70 years along with its companion known as accounting. The severity of the test has been caused by two main elements, (1) expansion of the field to include not only recording of transactions but also interpretation and reporting; and (2) rapid development of business itself with resulting complexity of transactions and adjustments. These two new phases presented themselves more or less gradually over the period mentioned, as influences began to appear in the form of the business corporation, income taxes, and government regulation. One of the main products of bookkeeping and accounting for the last century at least has been the calculation of profit or loss. During the last sixty years the textbooks on bookkeeping have kept pace with practical application of the subject, usually however, lagging by about ten years to permit new ideas to solidify and to allow for preparation of manuscript, printing, and proof reading.

This article focuses on education for public accounting on the collegiate level. There is little opportunity ordinarily for comparing an accountant to an apple dumpling or to a can of tomatoes, but it can be said without hesitation that in either case the quality of the raw material can have a great effect on the finished product. In the case of the accountant, however, there are some qualities which are very difficult to detect or evaluate by casual observation, and which are nearly impossible to create if they are not present in the undeveloped material. Either an institution or an individual in outlining plans for offering or receiving an education for public accounting should think of the objectives of the educational processes. The objectives can be assembled after one has given much thought to the types of duties and contacts of the accountant in his professional world from day to day. In literature, sciences, and some of the social sciences, however, the accountant will find it necessary to renew his acquaintance with some phases thereof from time to time in order to feel at home in a discussion that might arise in some of his numerous contacts.

The article presents the authors reflections on his twenty five years with the American Accounting Association. The author realizes that he was fortunate enough to have attended all the meetings of the Association. The members of the Association have missed many pleasant days at home, have neglected their work, have spent without reimbursement over $2,000 in attending these annual meetings, eleven of which have been on the Atlantic seaboard and six in Pittsburgh, Columbus, Cincinnati, Cleveland, and Detroit. The author admits there have been some very dry moments in some of the sessions, when it seemed necessary to exercise a maximum of self discipline. At times they had to seek relief in the hallways or the great out of doors in order to ponder over the serious problems and proposals made by the learned authors of some papers which were read. The truth of the matter is that though the span of years the members have considered the intangible values derived from these meetings as great enough to justify the personal detriments incurred in attending them.

The question whether premiums paid upon the redemption of an entire issue of preferred stock should be charged to earned surplus or capital surplus, has been the subject of difference of opinion among accountants for a long time. Even at present, many members of the accountancy profession seem to take opposite points of view in the matter. This study is based on the reasoning developed from the economic concept of profit and loss in business and from the single entry method of calculating profits. The conclusion, that the premium paid upon the redemption of an entire issue of preferred stock is properly chargeable to earned surplus to the extent that the total premium paid exceeds the amount of premium paid into the issuing corporation on the same issue of preferred stock at the time it was issued. The question under consideration does not deal with the treatment of discount on preferred stock when an entire issue is redeemed at a discount. Accordingly, no comment is made on that phase of the subject.

Pricing of inventory is very often a part of the junior's work along with additions and extensions of inventory. He should obtain specific instructions as to the type of items to be taken off the inventory for the price test. After having set these items down, he should obtain the senior's approval on the extent of his test. The junior should be certain that he has seen all policies that have been charged either to the prepaid-insurance account or to the insurance-expense account. And he must be sure that all policies have actually been charged into one of these accounts. A junior accountant should recognize that his problems, responsibilities and training should make him the best possible type of accountant to serve his organization, clients and society. A sound education in accounting theory, auditing procedure, economics, principles of internal control, law, taxation, and other related subjects. Ability to express ideas and facts in clear, concise and understandable language. Studiousness and perseverance; a real desire to keep up with latest developments in accounting subjects and ever-changing tax laws, and an unwillingness to finish a job or draw a conclusion until he is sure he is right.

Keeping and supervising the accounts of a municipality and assisting the administrative officers through the medium of timely and proper information requires a higher degree of intelligence than does such a position with a mercantile concern handling a similar volume of business. In addition to preparing budgets, keeping the various funds properly accounted for and preparing statements for administrative guidance, administrators must know the numerous legal requirements affecting municipal affairs. It is on this recommendation that all friends and advocates of honest, economical government should focus attention, recognizing that at the present time approximately 20% of the total income of the United States is expended by local governments such as townships, school districts, cities, park districts, sanitary districts, and counties. It is recognized of course that accounting systems themselves cannot make people honest, but it is maintained that adequate systems will enable honest and well meaning public officials to administer the affairs much more successfully.

This article analysis a questionnaire sent to 1000 alumni of the University of Illinois, College of Commerce. The question as presented to the alumni on this topic was adopted from one of similar type and purpose drafted by the American Council on Education in a survey it made several years ago on Business Education at the Collegiate Level. Of the 1000 questionnaires sent out 471 complete replies were received and 40 were returned because of unsatisfactory addresses. Of the 471 replies received 424 or 90% listed principles of accountancy, 394 or 84% listed written English, and 391 or 83% listed principles of economics as of primary importance. Another substantiation of the point of view of the alumni relative to the first five subjects in importance is the fact that they were also the ones recognized as the most indispensable. Not even one of the 471 respondents marked principles of accountancy or business law as of doubtful or no value and only one each marked principles of economics, written English and oral English in that category.

The article focuses on the proceedings of the twelfth annual convention of the American Association of University Instructors in Accounting, held at Washington D.C., between December 28 and 29, 1927. After some introductory remarks by the organizers, papers were read by W. W. Nissley of the American Institute of Accountants, John R. Wildman of the company Haskins and Sells, David Himmelblau of Northwestern University, Evanston, Illinois, William A. Paton of the University of Michigan, Ann Arbor, Michigan, and J. L. Dohr of Greene and Hurd and of Columbia University, New York, New York. The second program meeting was given over to a discussion of various features of the federal income tax law. Johns Hopkins University's, Baltimore, Maryland, professor presided at the session and opened it with a brief statement introducing the speakers of the afternoon, all of whom were representatives of the Bureau of Internal Revenue. The third program session consisted of a joint meeting with the American Association of Collegiate Schools of Business. The general topic for discussion was "The Place of Accounting in Commerce Curriculum."