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- Title
THE ACCOUNTING EXCHANGE.
- Authors
Husband, George R.
- Abstract
Time was when accountants looked upon the balance sheet as a presentation of the current financial position of a business enterprise. They thought of the left side of the statement, when it was presented in account form, as a summary of the assets of the enterprise. It is true that they avoided the inclusion of intangibles whenever possible but they made a virtue of that just as banking institutions made a virtue of writing their buildings and physical equipment down to one dollar. In the taking of inventories the accountant insisted upon a lower-of-cost-and-market valuation and he made a virtue of that too. In an earlier period of business enterprise, balance sheets prepared upon the basis of traditional principles and techniques did show assets and liabilities and proprietorship within the limits of accuracy demanded by the business management of that time. This general character of the valuation process is not peculiar to economic valuation. The present article is not the place for a general discourse on value but it may be said in passing that all valuation involves a reconciliation, integration or adjustment of different interests.
- Subjects
ACCOUNTING; BUSINESS finance; CORPORATE accounting; INTANGIBLE property; VALUATION; BUSINESS valuation; ACCOUNTANTS; FINANCIAL statements; ACCOUNTING departments
- Publication
Accounting Review, 1940, Vol 15, Issue 4, p507
- ISSN
0001-4826
- Publication type
Article