Abstract The article focuses on the problem of teaching consolidated statements. One of the difficulties of teaching consolidated statements has been the adjustments to be made for intercompany profit in inventory. This problem has been greater where minority interests were involved. The problem of teaching the elimination of intercompany profits is still complicated by the fact that the eliminations required are not the same if made for consolidated balance sheet statements only, as when made for consolidated income statements and balance sheets. Further differences are found in eliminations when the investment is carried on a cost basis as contrasted with the investment carried on an equity basis. The illustration used by the author is one for adjustments or eliminations where both consolidated balance sheets and income statements are involved, since this is assumed to be more difficult than the adjustments or eliminations when only balance sheets are to be consolidated. The author has found that an illustration of this type, where the varying eliminations can be seen in one place, gives the student a better understanding of the problem than piecemeal consideration of the problem.

Reviews the book "Principles of Auditing," by Walter B. Meigs.

Abstract Many of the experienced teachers, as well as some of the new ones, have developed devices and techniques for the presentation of certain knotty aspects of accounting. This article presents suggestions that might well be made available to other members of the teaching profession through publication in the magazine "Accounting Review." This article presents a method of elementary presentation of volume, cost and profit relationships. The material that follows is designed to be used in the classroom as a simple but highly effective method of explaining and illustrating (a) the concept of unit costs, and practical managerial uses of unit costs (b) the mild enigma that a reduction of unit sales price can result on occasion in an increase of aggregate net profits, and(c) the concepts of marginal costs, break-even point, and optimum profits. A class period of one hour is usually sufficient for presentation and discussion of the subject. The material should be presented in a sequence of steps.