Reviews the book "How to Run a Small Business," by J.K. Lasser.

The author in this article argues that for those students who do major in accountancy, the intermediate course must provide a sound foundation for advanced work in systems, auditing, advanced problems, and theory. He analyses the usual approach to this course in order to consider whether any changes or modifications may be in order. It has been argued that in the development of any course, two general problems must be considered, the content and the level of attainment expected of students enrolled. In the intermediate course in accountancy these problems become especially serious because of the variety of conditions under which the course is offered. According to the author in a given class three different groups of students may be included, non-accounting majors, accounting majors who will find work in industrial accounting, and accounting majors who will take positions in public accounting. The proportion of non-accounting students will very likely be somewhat smaller. If accountancy is offered in the freshman year, students may take intermediate accounting in either the first or the second semester of their second year in college.

Any person who has served as a member of a state board of public accountancy can attest that an appalling number of people engaged in business do not distinguish any difference between a public accountant and a certified public accountant. The certified man has demonstrated through legally prescribed methods that he is properly and suitably prepared to serve the public in important accounting matters. The public accountant may be a capable person but he has not demonstrated such capability through the legally prescribed methods. In comparing the certified public accountant with the lawyer, it should be borne in mind that in nearly every state in the union, before taking the bar examination, a person must first complete a satisfactory course in law, usually carrying no less than four years of college work on a full time basis in some recognized college. With the growth of business enterprises, the public accountant makes a vital contribution in meeting the need for independent, impartial and expert opinions on the financial position and the results of operation. This is his unique contribution, a service which no one else offers or is qualified to perform.

Reviews the book "Fundamental Accounting, Theory and Practice," by Stanley B. Tunick and Emanuel Saxe.

This article focuses on the control over the distribution of installments in a liquidating partnership. In the opinion of the author, it would be entirely logical to insist that since the reasons for the capital investments really terminate with the decision to liquidate the firm, balances being maintained for the purpose of covering the possible losses of the contributors, the interest allowance should be eliminated during the liquidating period. In fact, the earlier distributions to those in the stronger position do in a way take the place of an interest allowance. Similarly, it would appear logical to insist that salaries be allowed to partners during the liquidating period only for services rendered, and that such salaries should be deducted from proceeds and disbursed rather than credited to capital. On the other hand, if a partner's capital balance is such that it will not likely cover his share of liquidation losses, and if services which can be performed by this partner are needed in the liquidation activities, it may be appropriate to ask that he devote as much time as possible, using the salary allowed for such contribution to bolster his capital position.

The excess profits credit based on record of earnings and the excess profits credit, based on invested capital are fraught with variations applicable to different circumstances as to require individual treatment according to the individual case. The basic questions being asked daily relate in great measure to the numerous corporations which will be free from excess profits tax under the 1950 act. However, management needs an understandable explanation of why a corporation must file an excess profits tax return even though it has no such tax to pay. It needs to know what keeps the corporation free of such tax, and how high its current earnings can climb before incurring a liability. The following description applies to the multifarious small corporations whose incomes in the base period 1946, 1947, 1948, and 1949 did not exceed $30,000.00 a year and whose equity and borrowed capital does not exceed $200,000.00. If such corporations come into the advantageous position of having current net income considerably in excess of the $25,000.00, then their officers may have some guidance from this article, but should rely on tax advice patterned to fit the actual circumstances, using the information herein contained for approximations only.