Abstract The article focuses on German accounting literature. The "Kontentheorien," which were developed in German-speaking countries attempt to explain, often through mathematical analysis, the double entry mechanism of accounting. They are only indirectly related to the various balance sheet theories, which deal principally with the form and substance of financial statements and are largely centered around the valuation problem and income determination. German accounting literature includes many excellent works on "Rontentheorie." One of the more recently proposed theories in this area is the "funktionale Kontorechnung" by Walter Thorns, whose proponents claim that it has already been usefully applied in numerous German companies. One of the more interesting features of the Thorns system is the proposed treatment of cash transaction data. It is the purpose of the paper to acquaint the reader with this system of accounting and types of analysis, which are an immediate by-product of its application. What is new and different in the system is the fact that cash is considered to be in a category all by itself.

Abstract Germany, in recent history, has experienced two serious inflations. Each was a consequence of her defeats in the two World Wars. Germany's industrial capacity survived World War I without suffering serious damages, but a large part of her production was used for reparations and never reached the domestic market. Internal political strife and occupation of a major industrial area by the victorious allied powers further reduced the production available for domestic consumption. During the years of inflation, sound financial reporting was almost impossible. Scholars and practicing accountants examined and experimented with various proposed methods of inflation accounting without discovering any fully satisfactory results. The German balance sheet law of 1948 represents an attempt to achieve uniform balance sheet values at current prices. Although the final results were not ideal, the overall purpose of establishing a new and sound basis for financial reporting and taxation was certainly attained. The financial statements of the years following the currency reform are somewhat distorted because in Germany, as in the United States, price levels have been rising gradually and consistently.

Abstract In view of the American price level problems, which are currently much debated within the accounting profession, the attempted solutions of a similar problem in France should be of interest to American accountants. Following each of the two World Wars France experienced inflations far more severe than the slight inflationary price trends of the United States during the last twenty years. During the two decades following the First World War France went through a gradual but persistent inflation. In the years following the Second World War the inflationary trends assumed alarming proportions mainly because the several short-lived French governments of that time did not succeed in enforcing a sufficient degree of monetary discipline. French methods of revaluing assets attempted the elimination of price level effects from the financial statements by using price level coefficients, which were based on wholesale price indices of commodities, which largely determine the cost of most fixed assets. The French method, therefore, attempted to eliminate only inflationary price level effects of the selected commodities reflected in the revaluation coefficients. Price changes caused by shifts in demand or changes in technology are eliminated only when reflected in the combined index.

Abstract The many approaches used in introducing a beginning student to the field of business seem to indicate that finding an appropriate first course in business is one of the more difficult aspects of curriculum planning. Such a course, in addition to acquainting the student with the basic concepts of business, should also teach the various interrelationships between the various functions within a business and the basic relations of a business with other segments of the business world. Since most students specialize in one function during the later years of their academic training it certainly seems important to give them an integrated view of a business entity as early as possible. The beginning course in accounting is an ideal vehicle for introducing students to basic concepts and interrelationships of the business world. In this paper we propose a "flow chart" which might be used effectively as a teaching tool in several beginning courses of business including the first course in accounting. This chart, used as a visual aid device, should help students attain the aforementioned objectives of introductory courses. In later accounting courses the chart might also prove useful in the presentation of fund statements and cash flow statements.