Abstract Too frequently in the past the application-of-funds statement, if used by the auditor, has been included as a schedule or exhibit in the back part of the report. In too many cases also, the main application-of-funds statement has been supported by a working-capital schedule, which served as a catch-all for items that seemed difficult to classify and which served no especially useful purpose not covered by a comparative balance sheet. As a result of such type of presentation, the application-of-funds statement has been growing less and less significant to the executive and has been practically ignored by many in the process of examining an auditor's report, even when the report contained such a statement. The application-of-funds idea, however, is too valuable to have its real existence jeopardized by an unfortunate selection of form and location in the auditor's report. The main purpose of an application-of-funds statement or summary is to answer a type of question regarding the financial status and operating results which is not answered by the balance sheet or operating statement.

Abstract In 1917 and 1918, when the U.S. was participating in World War I, accountants were concerned primarily with the problems arising from the application of the income and excess profits taxes and the special war tax, all of which were practically new to American accountants. Aside from these tax laws, accountants did not seem to be concerned greatly from the professional point of view with war problems. In scanning the various monthly issues of the "Journal of Accountancy" through 1916, 1917 and 1918, one would hardly realize that the U.S. was at war except for a very few articles and editorials that appeared mostly in the latter part of 1918. Prior to October, 1918, there were articles on war contracts and cost accounting, cost-plus contracts, and overhead distribution on cost-plus contracts. The demand for accountants in war industries, governmental bureaus, and professional accounting firms has been so great that those who are frequently asked to assist in finding a supply of accountants have almost decided that the demand is unlimited and that there is no supply.

Reviews the book "Professional Accounting Training in Collegiate Schools of Business," by Mervin Isaacs.

Reviews the book "Farm Accounting Principles and Problems," by Karl F. McMurry and Preston E. McNall.

Reviews the book "Principles of Auditing," by E.L. Kohler and P.W. Pettengill.