This article discusses the use of probabilities and present value analysis in the taxation of lifetime gifts in the U.S.. Probabilities and present value analysis are used frequently in accounting literature and solutions to accounting problems. In the teaching of tax accounting, however, both the use of probabilities and present value analysis has received limited acknowledgement. Teachers should devise tax problems that will lead students to consider both of these concepts when working tax problems. Assume that a discount rate of 5 percent is adequate and that the property does not appreciate or depreciate during the period of time between the date of gift and date of death of the donor. Further, life expectancy data is obtained from actuarial tables provided by the Treasury Department. But the gift and estate taxes are often not the only tax considerations, for the income tax may be an important variable. If the gift property is income-producing property, there can be a sizeable overall income tax saving if the donee is in a lower income tax bracket than the donor.

The article focuses on social-psychological processes similar to those found in performance evaluation systems developed and used in accounting information systems. Further research must be done to determine the generalizability of these findings to behavior in actual business firms. However, several tentative hypotheses about accounting systems and their relationships to individual performance can be formulated: Performance reports quantitative measures like the test scores in the experiment accompanied by supportive comments generally stimulate higher performance more than a mere presentation of figures. The effects of certain combinations of factors on performance e.g., ability and self-esteem can be enhanced through the use of supportive feedback or diminished by neutral feedback. Initial budget estimates prepared by individuals holding varying levels of ability and self-esteem will be unrealistically high or low estimates of performance in relatively new activities. Accounting-type feedback decreases differences between expected and actual performance.

This article presents information on accounting education in the U.S. Accounting is not a process that is concerned exclusively with passing the Certified Public Accountants (CPA) examination. Yet, many professors understandably take great interest in their students' success with the exam. Avoiding the old argument of accounting education versus CPA examination preparation, the paper reviews "CPA examination preview clinics," programs through which accounting educators can help CPA candidates without "teaching the exam" in their classes. At the same time, participation in CPA preview clinics is another small way of bringing accounting practitioners and educators together. The purpose of the paper is to outline what is being done by the various state societies of CPA to aid candidates in their preparation for the Uniform CPA Examination and, hopefully, to encourage college and university accounting instructors to take part in programs sponsored in their areas. Passing the CPA examination is not an easy task. The need that candidates have for guidance and instruction in preparing for the CPA examination is being met in an organized manner in a few states through the "CPA preview clinic."

Reviews the book "DR. Scott Memorial Lectures in Accountancy," vol. 3, edited by Robert C. Culpepper.

The article discusses socio-economics and accounting education. The purpose of the study was to obtain information relative to the background of accounting graduates in economics. The information was obtained by the use of a questionnaire which was sent to all schools in the American Association of Collegiate School of Business (AACSB). Usable replies were received from over 80 percent of the schools. The purpose of the study was to derive certain information concerning the economics requirements of the AACSB schools for accounting majors. It also concerned the degree of flexibility the accounting major had in selecting the economics courses required for graduation. There is very little choice for the accounting major in selecting these economics courses. Almost 80 percent of the AACSB schools do not allow the accounting major to select any of the required economics courses needed for graduation. If there are upper-division electives the accounting major may have a choice in selecting economics courses.

Reviews the book "Valuing a Company: Practices and Procedures," by George D. McCarthy and Robert E. Healy.