INDEX

Footnotes:

[1] The student should note the manner of showing depreciation reserves in the comparative balance sheet. This is done solely for the purpose of eliminating the detail column in the assets needed to handle the subtraction item. This method of showing is countenanced only in comparative statements where saving of space is a chief consideration.

[2] The 72 days are arrived at as follows:

[3] The items in italics in this chart are to be handled as subtraction items from the account below which they are placed or from the group in which they appear.

[4] Light, heat, and power expense should in strict theory be distributed over the departments using it; the selling department to be charged with its share and the general administrative with its share. Where such procedure is difficult or undesirable, the expense is best classified as above.

[5] These items are sometimes distributed partly to Selling and partly to General Administrative where an equitable basis for distribution can be determined.

[6] These items are sometimes distributed partly to Selling and partly to General Administrative where an equitable basis for distribution can be determined.