Applications of capital theory refer to a world of changing population, institutional processes, technology, and innovation. For example, an investment decision may be affected by some expected repetitive patterns of circumstances or by some seemingly irreversible processes threatened by obsolescence or stagnation. One may assume the principle of an eventually diminishing net returns flow. It seems desirable to treat the marginal efficiency of capital in terms of an initial investment and a net returns flow that varies with time. For a variety of such time dependent net returns flows the treatment of the marginal efficiency of capital is simplified by the Laplace transform technique illustrated in this article.

HIS paper attempts to supplement the T discussion initiated by Professor Simon Kuznets in his work on the impact of economic growth on size distribution of income (American Economic Review, XLV (March I955) and continued by Professor Irving Kravis (this Review, XLII (November I960). It will deal with (i) measures of income inequality, (2) determinants of differences in income dispersions in various countries, and (3) the sources and limitations of the data used, (Appendix).

This article examines some economic problems concerned with profit sharing in a Socialist economy. Two alternative systems of incentives have been made the subject of parallel investigations, comparing the effects which each of these systems have on the firm's behavior. We also examine some problems of price regulation. In the investigation both linear and nonlinear programming methods have been used.

Attention has been directed and limited in this paper to four significant but often neglected aspects of corporate stock dividends; namely, terminology, sources, notifications and disclosure, and the balance sheet presentation. The recommendations evolving from these considerations are summarized as follows: 1. The term "dividend" should be restricted in use to identify only declarations from retained earnings payable in corporate assets. 2. Use the term "stock distribution in kind" to identify the distribution of stock to stockholders of the same class of stock distributed. 3. Use the term "stock distributions not in kind" to identify the distribution of stock to stockholders of a class of stock different from the stock distributed. 4. Recognize the impropriety of fixed asset appraisal increments as a source of stock distributions in kind. This recommendation does not include appraisal increments from quasi-reorganizations which were not considered in the previous discussion. 5. Continue the notification and disclosure requirements of Accounting Research Bulletin No. 11. 6. Present declared but unissued stock distributions in kind as part of capital stock. 7. Follow the A.I.C.P.A. proposal that stock distributions in kind be disclosed on subsequent financial statements until such information loses its significance. The introduction and acceptance of new terminology should greatly facilitate the understanding of the nature and effect of "stock dividends," Acceptance of the recommendations pertaining to notifications and statement presentation will mark a forward step in the development of accounting theory and practice.

This article presents the problems asked in the theory of accounts portion of the November 10, 1961, Uniform Certified Public Accountants Examination. Overall there were 7 problems. Problem #1 asks to assist the chief accountant of a company in the preparation of a balance sheet, given various classifications suggested by the chief accountant for the balance sheet. The second problem asks to define "natural business year" and discuss briefly the reasons for changing the accounting period of a company to a "natural business year." The third problem relates to the recording of the leasehold and the liability on the tenant's books. The fourth problem requires to explain bond indentures and sinking fund. The fifth problem asks to give the journal entries for a companies stock option plan. The sixth problem asks to define "current operating performance. And the final problem belongs to the differences between taxable income and accounting income. The article also presents the solutions for all the given problems.

The article presents the theory portion of the Uniform Certified Public Accountants (CPA) examination held on May 18, 1962. The paper includes multiple-choice questions on accounting on the topics of realized income, matching costs and revenues, going concern concept, current assets, cost accounting, and lower of cost or market. One of the questions requires calculation whether the amount to be recorded for the dividend payable should be book value or market value. In one of the questions, the students are required to prepare a report for the president explaining the "quasi-reorganization." The report should include definition and accounting features of the procedure, the purpose of the procedure, under what conditions should it be considered, authorization necessary, and disclosure required in the financial statements. In a question the students are asked to describe the depreciation methods based on treating assets as units, and a group or as having a composite life. Answers to the questions are also provided.

Public accountancy in Hong Kong may be divided into three major parts, auditing, taxation and costing. Costing is a special feature of public accountancy in Hong Kong. It is associated with exports under the Commonwealth Preference scheme. Auditing in Hong Kong may be either compulsory or voluntary. The proper title of a public accountant engaged in company auditing is the "authorized auditor," an official list is kept by the companies' registry and published yearly in the government's December gazette. The official accounting body in Hong Kong is the Authorized Auditors Board. The application of statistical techniques, sampling, probability control, etc., to auditing has not received enough attention, but the popular method of direct confirmation used in the United States is also widely accepted in Hong Kong. Income tax supplies the largest portion of the total Hong Kong revenue, although the rate is quite low. The standard rate of tax is now 12.5%, a rate unchanged since 1951. Profits tax is charged on every individual, partnership or corporation carrying on business in Hong Kong.