INDEX

Footnotes:

[1] “Business Finance” by Lough.

[2] “Stocks and Shares” by Hartley Withers.

[3] From “Corporate Organization and Management,” by Thomas Conyngton.

[4] In “Accounting in Theory and Practice.”

[5] In “Accounting Practice and Procedure.”

[6] In “Accounting in Theory and Practice.”

[7] Material in parentheses is author’s.

[8] Material in parentheses is author’s.

[9] In “Auditing, Theory and Practice.”

[10] In “Modern Accounting.”

[11] In “Power for Profit.”

[12] In “Accounting Practice and Procedure.”

[13] “Handbook of Railroad Expenses,” by J. S. Eaton.

[14] In “Power for Profit.”

[15] In “Principles of Depreciation.”

[16] In “Value for Rate-Making.”

[17] Material in parentheses is the author’s.

[18] In “Modern Accounting.”

[19] In “Depreciation and Wasting Assets.”

[20] In “Modern Accounting.”

[21] Chart adapted from “Regulation, Valuation and Depreciation,” by S. S. Wyer.

[22] Leonard Metcalf paper on “Water-works Valuation and Fair Rates” before the American Society of Civil Engineers, Vol. LXIV, 1909, page 16.

[23] In “Depreciation and Wasting Assets.”

[24] Spring Valley Water Co. v. San Francisco, 165 Fed. Rep. 703.

[25]

[26] In “Income Tax Procedure, 1918.”

[27] In “Public Utilities, Their Cost New and Depreciation.”

[28] In “Value for Rate-Making,” pp. 255-256.

[29] R. P. Bolton in “Power for Profit.”

[30] In “Value for Rate-Making.”

[31] Inasmuch as by hypothesis the periodic depreciation charges are the same D₁ = D₂ = D₃ etc., hence, D₁ is used to represent the fixed depreciation charge per period.

[32] Inasmuch as by hypothesis the periodic depreciation charges are the same D₁ = D₂ = D₃ etc., hence, D₁ is used to represent the fixed depreciation charge per period.

[33] The interested student is referred to Proceedings—American Society of Civil Engineers—December, 1916, in which will be found the Valuation Committee’s report, and to Salier’s “Principles of Depreciation,” in both of which the formula is developed.

[34] D and d may be expressed as the respective periodic amount-multipliers necessary to create sinking funds of one dollar each under the conditions as to time and rate for V and V₁. VD and V₁d become, therefore, the periodic amounts of true depreciation, i.e., decrement in value.

[35] D and d may be expressed as the respective periodic amount-multipliers necessary to create sinking funds of one dollar each under the conditions as to time and rate for V and V₁. VD and V₁d become, therefore, the periodic amounts of true depreciation, i.e., decrement in value.

[36] In “Depreciation and Wasting Assets.”

[37] From “Valuation, Depreciation and the Rate-Base,” by C. E. Grunsky.

[38] That is, cost less salvage.

[39] That is, the number of times renewal of the asset will be required during the longest life-period of any of the assets.

[40] Dollar-years, column (f), is the product of the total invested values as shown in column (e), and the life of each group as shown by column (b). Thus, $400,000 invested for 5 years is the equivalent of $2,000,000 invested for 1 year.

[41] (d) = (c) ÷ (b).

[42] See Consolidated Gas Co. v. City of New York, 157 Fed. Rep. 855, and 20 I. C. C. Rep. 344.

[43] Valuation Committee of the American Society of Civil Engineers.

[44] In “Accounting Practice and Procedure.”

[45] In “Engineering Valuation of Public Utilities and Factories.”

[46] In “Auditing, Theory and Practice.”

[47] In “Accounting in Theory and Practice.”

[48] P. J. Esquerré, in “Applied Theory of Accounts.”

[49] In “Auditing—Theory and Practice.”

[50] “The Principles of Bond Investment,” by Lawrence Chamberlain.

[51] Montgomery’s “Auditing, Theory and Practice.”

[52] In “Principles of Economics.”

[53] In “Political Economy.”

[54] In “Principles of Economics.”

[55] In “Income Tax.”

[56] Badham v. Williams.

[57] In “Auditing, Theory and Practice.”

[58] In “Accounting Practice and Procedure.”

[59] Verner v. General and Commercial Investment Trust, Limited, 2 Ch. 239 (1894).

[60] In “Modern Accounting.”

[61] In “Accounting Practice and Procedure.”

[62] In “Auditing, Theory and Practice.”

[63] In “Applied Theory of Accounts.”

[64] In “Modern Accounting.”

[65] Ch. 59 of the Consolidated Laws (Ch. 61, Laws 1909).

[66] Lee v. Neuchatel Asphalte Co.

[67] George Lisle in “Accounting in Theory and Practice.”

[68] In “Accounting Practice and Procedure.”

[69] Credits in red ink.

[70] This item comprised 5 drafts, of £10,000 each, at 4.75, 4.7575, 4.74875, 4.7625, and 4.78 respectively.

[71] This also may be kept in both currencies if desired and only totals carried in the London Control account.

[72] “In Symbols.”

[73] Intercompany profit between Z and Y.

[74] Subtraction item, usually shown in red.

[75] From a paper by Herbert C. Freeman, entitled “Accounting for Receivership,” presented at the annual meeting of the American Institute of Accountants at Washington, D. C., 1917.

[76] Increments in value.

[77] Increments in value.

[78] Represent capital deficiencies at the time of the 1st and 2nd instalments.

[79] Represent capital deficiencies at the time of the 1st and 2nd instalments.

[80] The account title may be written just as given or, better, the parenthetical part may be put on the small half-line space immediately below the title line as that is usually ruled. (See ruling at top of any ledger page.)

[81] The account title may be written just as given or, better, the parenthetical part may be put on the small half-line space immediately below the title line as that is usually ruled. (See ruling at top of any ledger page.)

[82] The account title may be written just as given or, better, the parenthetical part may be put on the small half-line space immediately below the title line as that is usually ruled. (See ruling at top of any ledger page.)

[83] The finished goods were listed at the factory cost but the policy covered the selling price which was based on a profit of 60% on the factory cost, with 10% on sales added for selling expenses.

[84] Most of these problems in Appendix C are C. P. A. problems of various states. The dates have been changed to recent dates.

Transcriber's Notes:

The cover image was created by the transcriber, and is in the public domain.

The illustrations have been moved so that they do not break up paragraphs and so that they are next to the text they illustrate.

Typographical errors have been silently corrected.