Abstract Accounting has long since been recognized as a science indispensable in its application to daily life, so much so that it seems incomprehensible that times have been, and not even very remote in which it did not exist otherwise than in extremely crude forms. Bookkeeping is such an integral part of accounting that, until recently, the words were held to be interchangeable. That is why, in endeavoring to trace the origin of accountancy, one always looks for the earliest manifestations of bookkeeping. Unfortunately, in making such assertions, one does not always duly bear in mind modern notions of bookkeeping, but if to those ancient documents the criterion of modern, representative, definitions may not be applied, confusion is bound to arise and should be obviated by giving different names such as accounting or account-keeping-to those precious relics, mute but eloquent witnesses of the glories of civilizations of the dim past. In this sense, therefore, accounting and bookkeeping are not identical and the latter indicates a state of evolution that was never reached by Sumerian, Egyptian or other such ancient cultures of which the accounting records are available.

Abstract Companies formed under the English laws may be either Joint Stock Companies, that is formed under the Companies Act, or Statutory Companies, generally formed under a Private Act of Parliament incorporating the clauses of the Companies Clauses Act and such other Acts as may be applicable. In the case of ordinary Companies not having public utility characteristics, the legislature has tended to leave the Companies themselves to adjust questions of finance as between the shareholders, on the one side, and the customers, on the other side, as normally the field of supply is open for the operations of competitors to the advantage and protection of the public. In the case of public utility concerns, however, the same degree of possible competition is not available, so that the "undertakers" are not unreasonably restricted as to dividends in the interests of the consumers who have to pay the tariffs for their supply. The mere regulation of dividends, however, would not be sufficient protection for consumers unless limitations were also placed upon the accumulation of surplus profits.

Abstract If one were called upon to express in general terms and briefly the essential nature of the accounting problem, one could hardly improve upon the statement that, in its largest aspects, it is the problem of distinguishing between charges to income and charges to capital. The problem of depreciation, with its economic and accounting implications, has not always received the attention which it receive today. It is because of the relationship between these two problems-the theory and practice of current depreciation accounting and the treatment of depreciation in public utility valuation that the present thinkers suggested the arrangement of a program for their discussion. While accounting theory and practice give preference to the periodical allowance method, the retirement method is not to be wholly condemned. The propriety of a method of accounting for depreciation is to be tested by the general accuracy and precision with which it allocates costs to the proper product units or productive periods and expresses, for general balance sheet purposes, asset valuations.

Reviews the book "Forms in Modern Business Systems."

Reviews the book "Economics," by Bruce Winton Knight and Nelson Lee Smith.

Abstract This article focuses on the budget program instituted by the production department. The chief problem will be to produce the goods in time for their sale. In order that this may be done, or that production and sales demand may be coordinated, an inventory record of the finished goods must be kept. These records will include a control over the minimum and maximum amounts of inventory which should be on hand. The production department may consider it best to follow the lead of the sales department by manufacturing the product for the seasonal demand and shutting down until production again becomes necessary. This is the practice in many industries. In the first place, the practice of working at a high pitch for a few months of the year is not the best way of using plant and machinery. Second, it is often more economical to buy raw materials when the season is over and the demand less. Third, it is well known that men do better work when operations are regular than when they are forced to turn out rush orders.