The Financial Policy of Corporations, Vol. 3 of 5 (Classic Reprint)

Excerpt from The Financial Policy of Corporations, Vol. 3 of 5<br><br>The basis of business policy is the science of accountancy, 3; Accountancy based on a correspondence between economic and money values, 4; Balance sheet and income account contrasted, 5; Net profits deduced by two separate sets of adjustments, 7.<br><br>As soon as a business has been established, the financial problems, so important in themselves at the beginning, become resolved largely into accounting problems directly pertaining to the administrative policy of an active and continuing business. This is because all values of a going business must be computed indirectly. At the time of promotion there may have been a correspondence between the economic value and the cost of the property acquired by the new corporation, but no sooner is the business under way than changes in the value of its property necessarily occur. Accountancy is the science having to do with the statement and interpretation of these changes in economic value in terms of money value. It is the science of fact underlying all questions of the financial policy of the actual operation of the corporation.<br><br>The science of accountancy is primarily a system of logic. It rests on one absolutely fundamental presupposition and three postulates arising directly out of this. The fundamental presupposition of accountancy is that all economic values can be compared with each other in terms of a common unit. This unit is money.<br><br>About the Publisher<br><br>Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com<br><br>This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.