Journal Article On the Interpretation of Professor Leontief's System Get access L. R. Klein L. R. Klein Michigan Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 20, Issue 2, 1952, Pages 131–136, https://doi.org/10.2307/2295846 Published: 01 January 1952

Journal Article Price Effects and the Foreign Trade Multipliers Get access G. L. Rees G. L. Rees Swansea Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 20, Issue 3, 1952, Pages 228–231, https://doi.org/10.2307/2295893 Published: 01 January 1952

Journal Article Mr. Gottlieb on Marx: A Comment Get access Ronald L. Meek Ronald L. Meek Glasgow Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 20, Issue 1, 1952, Pages 78–83, https://doi.org/10.2307/2296164 Published: 01 January 1952

Abstract This paper may be regarded, according to the author, as an informal interim report by the chairman of the American Accounting Association's committee on social accounting, or as some prefer to call it, national income accounting or national economic accounting. During its first year the committee has been able to reach a wholly united opinion on what its name or its program should be, but it did welcome as one the action by the executive committee that it be established as a permanent committee. Whatever its future field of interest, the committee has been convinced that, to start with, a period of self-education was essential to a rational consideration of the problems that have beset economists and others who have lately specialized in this field. Fascinating techniques suggesting themselves in the course of evolving national-income components and data-building processes generally, together with deep concern over inescapable imperfections in both available material and existing methods of compilation, have served effectually to preoccupy researchers and block consideration of the interpretations put by others on their final product.

Abstract On writ of Certiorari to the District Court of Appeal, Fourth Appellate District of California. Mr. Chief Justice delivered the opinion of the Court on Whether a corporate entity can be ignored, even though the corporation is actually engaging in business and Whether a corporation, with no other stockholders than another corporation, the stock of which corporation in turn is owned by a corporation, and so on, add infinitum. Prior to December 31, 1951, respondent Edgar Lear was controlling stockholder of each and all of the respondent corporations. As of that date each of the corporations acquired stock in one or more other of the corporations, in such manner and to such effect that if the group of corporations were consolidated, no capital stock would be outstanding. The undisputed objective of the plan was to lessen the taxes of Edgar Lear-both the income tax and the estate tax-while keeping in the hands of Edgar Lear and his family the actual control of all of the respondent corporations.

Abstract Accounting uses a universally known measuring stick, the dollar. Yet the common dollar is not an invariant measuring unit. Dollars in 1950 do not measure the same purchasing power as did 1940 dollars. Accounting, in other words, assumes a stable measuring unit. In periods of major price movements this assumption is clearly invalid for certain purposes, as has been pointed out by various writers in recent years. Undoubtedly interpretive accounting faces a challenge at this point. Management and accountants should remember that their primary responsibility is still to the investors, those who seem to be the forgotten men. The absentee investor, unlike the owner-operator, has no opportunity to combine reported information with first hand knowledge of the conditions and activities of the business. Management and accountants have the responsibility to provide information to aid the stockholder in wise decisions. The stockholder requires information to aid him in decisions to hold, sell or buy more stock, in other words, information concerning the comparative merits of his stock and alternative investment opportunities.

Abstract Two needed virtues of any accounting report are simplicity and accuracy. Simplicity is essential in a report to convey to the reader the meaning with the least possible inference or interpolation from his own predetermined notions on the matter involved. The break-even chart is just such a summary report. Its simplicity enhances its ability to communicate the relation of sales less variable and fixed costs at different levels of operation quite forcefully to financial analysts outside the company and to the management group within the company. In such a function its use to convey the information in the master budget is undisputed. In plotting sales as a function of volume on a break-even chart it is assumed that sales equals production which, obviously, is not entirely true because of the accumulation or depletion of inventories. Inventories, though, are usually very small in comparison to total production and, for practical purposes, are ignored in computing sales at various levels of production. Since the break-even chart is based on accounting data and is used as an accounting report, it customarily ignores the cost of the investment used to obtain the production and distribution of a company's output.