Chicago Daily News

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Executives bewildered  by accountants’ inability to put their rules in order (and who are wondering what it takes to write a good annual report) should get a copy of         Accounting: The Language of Business, written by accounting profs Sidney Davidson and Roman Weil (University of Chicago), James Schindler (Buffalo) and Clyde  Stickney (Dartmouth)

  

   The 133-page book opens with an excellent glossary of technical terms and common expressions and follows with sections on :

 

·          Rules governing accounting-for-replacement costs and the effects of inflation.

 

·          General Electric’s annual report, consistently among the best in industry.

 

·          Sears Roebuck’s annual report, interesting in its handling of an enormous amount of current liability for deferred taxes.

 

·          Accounting magic, wherein it is shown how two hypothetical companies with identical results can each apply generally accepted accounting principles, but one will show significantly higher net income than the other.

 

 

 

 

Reviews of previous editions of Accounting: The Language of Business