Abstract The article focuses on the report and accounting approach. Undoubtedly the most difficult task which confronts the elementary accounting instructor is the presentation of an adequate concept of the balance sheet. The beginning student requires no great amount of imagination in perceiving that the typical business enterprise acquires and owns assets of various types. Furthermore, the thought that these resources may and do become charged with debts is comparatively simple to master. The difficulty arises, however, in distinguishing between the objective realities of assets and liabilities and the subjective reality of the proprietorship element. Again, the student in the first course of accounting perceives readily that the assets do, or should have some value to the concern and that these values are capable of expression in terms of the monetary unit. Furthermore, he has no difficulty in realizing that the initial value placed upon a resource is its purchase price. Difficulty is encountered, however, with the problem of revaluation which arises in the preparation of each periodic balance sheet.
Orton Wells Boyd (Sat,) studied this question.