The article presents several problems related to accounting, which were prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the second half of the C.P.A. examination in accounting theory on May 19, 1961. Some of the questions were based on the topic of consolidated statements of any company, like, whose financial position is represented by consolidated statements; consolidated statements and beneficiaries; proper consolidated statements of companies, etc. One of the problem states that a company P had 300,000 shares of stock outstanding. It owned 75% of the outstanding stock of T. T owned 20,000 shares of P's stock. The figure of P's outstanding stocks in the consolidated balance sheet has been asked. A question has been asked that is it acceptable accounting treatment to carry investments in subsidiaries not consolidated at cost. A question focuses on the issue of the profit increment of any company, but no valid reasons in support of this growth has been presented to the president by the accountant, as everything seems as stable as it looked when the company started.

This article focuses on the examination in theory of accounts of the Uniform Certified Public Accountants. There were two groups of question. In one of the question one is to indicate the nature of the account or accounts to he debited when recording each transaction using tile preferred accounting treatment by placing an "X" in the proper column on the answer sheet provided. Prepayments should be recorded in balance sheet accounts. Disregard income tax considerations unless instructed otherwise. The question includes facts like, the Talbot Co. spent $8,600 during the year for experimental purposes in connection with the development of its product. This is approximately the same amount that the company has been spending for this purpose annually for many years. The Placey Co. recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books. Razing costs of $1,200 were incurred in removing the smaller building, which had an appraised value at acquisition of $6,200, in order to make room for new construction.