I. Introduction, 698. — II. The relation of new investment to changes in the use of existing capital, 700. — III. The analysis applied to three concrete problems: (a) vertical integration, 706. — IV. (b) Development of backward areas, 708. — V. (c) The trade cycle, 711.
Abstract The article presents a brief description of a graduate curriculum in accounting. It begins at the introductory level and extends over a period of two years. It includes the very interesting and important problem of providing accounting instruction for nontechnical students. As liberal arts graduates the students will have had a minimum of two years' additional instruction at the university level and, as liberal arts go these days, they will have had something in the way of a background in such areas as economics, banking, statistics, etc. The program of the first semester is designed to lay a foundation. The student is to be acquainted with economic resources and activities. In the second semester the student continues his study of accounting and law while he explores the administrative problems in the three basic fields of production, distribution, and finance. The second year is wholly one of accounting study in the basic areas of principles, costs, verification, taxation and research.
Abstract The primary benefit accruing to farmers' cooperatives are the right to exemption from federal income taxes and the right to use the hank for cooperatives. Several federal statutes define and describe the prerequisites for these benefits. The most important of these provisions is found in Section 101 of the internal-revenue code dealing with exempt organizations and, more specifically, paragraph 12. The exemption from federal taxation is not automatic and it is not sufficient that the organization qualify as a matter of operation and organization. Form 1028, Exemption Affidavit, must be filed with the U.S. Treasury Department and a definite letter must be received from the Department before the exemption is effective. This form is an informational form and requires data as to the provisions of by-laws, charter, marketing agreements, etc. If the request filed after the beginning of operations, a detailed balance sheet must be submitted as well as a "classified statement of the receipts and disbursements'' during the current year. Unless the Commissioner has determined that an organization is exempt, it must prepare and file an income-tax return for each taxable year of its existence. A large number of farmers' cooperatives are not tax exempt. Many associations may not be so organized as to meet the specific qualifications for exemption. In other cases the associations may prefer to have a nonexempt status if management and owners believe that it is more advantageous to be taxed than to meet the statutory conditions of exemption. It is possible for these associations to be organized and operated is such a way that there is little taxable income.
Abstract In October, 1946, President Eric L. Kohler with the then President elect Professor Hermann C. Miller, appointed the Committee on Revision of the Statement of Principles of the American Accounting Association. The appointment of a special committee on revision of the Statement of Principles represented a significant departure from past procedures. As the members of the Association well know, efforts in the past to formulate and summarize accounting principles were those of the Executive Committee of the Association. The Committee undertook first to survey opinion which would aid it, first, in deciding whether a new statement of principles was desirable and, second, if deemed desirable by the Committee, in the formulation of such a statement. It was believed a democratic procedure must offer each member of the Association an opportunity to express himself; that each member must feel he had been given an opportunity to state his position and thoughts. The Committee decided the most economical coverage could be obtained through the medium of the accounting review.
Abstract In the June, 1947, issue of the "Journal of Accountancy," appeared an article entitled "TVA's first audit by General Accounting Office (GAO) points way to businesslike evaluation." The article starts out with an editorial comment stating failure of TVA . . . to provide "yard-sticks" to measure private corporate operation; or, to be capable of being evaluated as going businesses, springs from lack of facts. General Accounting Office has made a commercial-type audit of Tennessee Valley Authority (TVA), plus recommendations, which show how TVA may be made comparable to commercial operation. . . failure to charge property taxes, depreciation, interest, and other expenses makes business men feel that government corporations, like TVA, cannot be considered commercial enterprises. The business man's objection grows out of the belief that government should not set up privileged competition with him, using his own money, and giving this competition the added advantages of freedom from taxes, interest, and other charges.