A Working Model of the Financial Dynamics of a Business

Abstract

In this paper we do not propose to analyze whether traditional accounting statements portray the true financial picture. Nor is there need to elaborate on the time and labor required for the compilation of modern accounting statements. With few exceptions, businessmen consider them excessive, although many in the accounting field disagree. An extension of the method suggested here has made possible the successful solution of complicated accounting problems taken from CPA examinations in less than one-third the usual time.