The article reviews the book "Federal Income Tax Fundamentals," second edition, by William E. Dickerson and Leo D. Stone.

The article presents problems and their solutions prepared by the Board of Examiners of the American Institute of Certified Public Accountants, and presented as the first half of the Certified Public Accountants examination in accounting practice held on November 03, 1965. The first question deals with the taxable income of an employee who died, and the liability of his employer towards his widow. The second question deals with the accounting of merger of a proprietorship. Certain questions deal with the issue of calculation of earnings per share. One question deals with the issue of accounting of wages and salaries of employees of a proprietorship. Another question deals with the issue of capital gains tax of a stockbroker, who sold his sole residence. One question deals with the issue of recognition of loss for a stolen diamond ring, given that it was not insured, and that it had different cost and fair market value. Another question deals with the issue of claim amortization of leasehold improvements of a retail store.

The article explores the presence of accounting in the Zenon papyri of the Greeks. The manuscripts give evidence of a surprisingly elaborate accounting system which had been used in Greece since the fifth century B.C. All accounts were audited, as evidenced by a sloping downstroke or a heavy dot in front of each figure. The Zenon papyri include several monthly, annual, and even triennial summaries of accounting transactions. Their most remarkable feature is the high degree of accounting control and the business-like efficiency of central management.

The article provides several problems prepared by the Board of Examiners of the American Institute of Certified Public Accountants presented as the second half of the certified public accountant examination in accounting practice on May 19, 1966.

Accounting is closely associated with the development of the modern business organization. Thus, accountants are expected to show a strong interest in recent contributions to organization theory which increases the understanding of the business firm and how it functions. However, an examination of accounting literature suggests that accountants have been relatively unconcerned with current research in organization theory. Although the past few years have witnessed the beginnings of an effort to bridge this gap, much still remains to be done. This article attempts to demonstrate that an understanding of behavioral theory is relevant to the development of management accounting theory and practice. The management of a business enterprise is faced with an environment--both internal and external to the firm--that is in a perpetual state of change. Not only is this environment constantly changing, but it is changing in many dimensions. These include physical changes, technological changes, social changes and financial changes. An important characteristic of good management is the ability to evaluate past changes, to react to current changes and to predict future changes.

In this article the author discusses the tax planning lesson for teaching elementary accounting course to accounting students. The lesson can be presented in a single class period, and can demonstrate the possibilities for creative solutions to common tax problems. The author also explores the problems faced by teachers in teaching elementary accounting course. In addition, the author observes that the advantages as well as the disadvantages of the corporate form of business organization can be raised with consideration given as to why corporations allowed to do so will or will not elect to be taxed as partnerships.

The article presents various problems prepared by the Board of Examiners of the U.S. body American Institute of Certified Public Accountants and presented at the second half of the certified public accountant examination in accounting practice on November 4, 1965. The candidates were required to solve all problems. The suggested time allowances for various problems were also given. One of the problems talked about the budget expenditures of the Board of Education of the Victoria School District for the year ending June 30, 1967. Data given included that the estimated average daily school enrollment of the School District is 3,000 pupils including 200 pupils enrolled in a vocational training program, estimated revenues include equalizing grants-in-aid from the state of $150 per pupil and that the grants were established by state law under a plan intended to encourage raising the level of education. The students were asked to prepare a schedule computing the estimated total funds to be obtained from local taxation for the ensuing school year ending June 30, 1967 for the Victoria School District.

The article presents a question paper prepared by the Board of Examiners of the American Institute of Certified Public Accountants which was presented in the 1st half of the Certified Public Accountants (CPA) examination in accounting practice on May 18, 1966. The candidates were required to solve all the problems. All the questions were grouped into five sections. The suggested time allowances for each section was fixed at 40 to 50 and 50 to 60 minutes. Section 1 comprised of 20 multiple choice questions. Section 2 presented a question which required students to prepare a financial statement and to compute income-tax liability. Section 3 required the students to prepare a schedule to compute minimum bid i.e., the bid that would neither increase nor decrease total profits. Section 4 asked of students to prepare a formal consolidated statement of source and application of funds for a company and its subsidiary and a formal schedule of changes in consolidated working capital. Questions in section 5 required students to compute gross profit margin.

The article discusses the impact and significance of reversing an entry in accounting, as this is a frequently confusing topic in accounting education and examinations. The reversing entry is defined as an entry which cancels a preceding entry. If an entry on either side of an account is followed by a reversing entry, the result of two entries is to leave the account in its original condition. The sequence of entries must be very carefully planned there must exist criteria by which a correct sequence can be constructed. The criteria are that at the end of each sequence balancesheet accounts involved stand at zero and that each individual transaction has been recorded once. These entries may be defined as adjusting entries, closing entries, correcting entries and routine entries. A routine entry, a closing entry, and an entry correcting an error in amount or account are never reversed. Conventionally, reversing entries are conceived as following and canceling an adjusting entry; however, an entry correcting an omission and an adjusting entry may be reversed under some circumstances.

The article reviews the book "Income Determination Theory: An Accounting Framework," by Norton M. Bedford.