Abstract The conventional approach to teaching the preparation of the application of funds statement calls for the use of a columnar worksheet. Included in a worksheet of this nature are comparative balance sheets, the computed monetary changes in the individual statement items, a number of working paper adjustments and finally, extended figures representing funds applied and provided and working capital increases and decreases. The purpose of the worksheet is, of course, to facilitate the preparation of the funds flow statement. It is not an end in itself, but merely the means to produce the finished statement. After several years of employing the worksheet technique, the writer became convinced that there must be a more effective method of introducing the student to the preparation of the funds flow statement. One disturbing aspect of the usual textbook approach to such preparation is the excessive amount of time consumed in completing the worksheet, i.e., in entering the comparative balance sheets, in computing and listing and balancing the net changes therein, in recording all the necessary adjustments and finally, in extending the net changes, as adjusted, to the appropriate statement columns.

Abstract The article discusses the need for development of objective and explicit criteria for selecting proper accounting alternatives. The factors influencing an accountant have been listed which include the desires and demands of clients, economy of labor and the influence of income and tax regulations. The transition of an accounting student to an accounting practitioner, accounting examinations and alternative courses of action presented in accounting texts and the theoretical explanations to establish the conditions under which each method is applicable are described. The article stresses on the necessity of selecting a proper method due to a different substantial magnitude resulting from the various methods of matching cost with revenue. The statement made by the Committee on Accounting Procedure of the American Institute of Accountants in reference to inventory pricing has been quoted as an example of a practitioner's ability to express his opinion on the conformity of a client's financial statements. The article provides proof of the need for an authoritative guide of action under particular set of circumstances.

Reviews the book "C.P.A. Problems," by Arthur D.Maxwell.

Abstract During the year 1958 the Committee on Certified Public Accountants (CPA) Examinations of the American Accounting Association continued to cooperate with the Director of Education, Mr. Wilton T. Anderson and the Board of Examiners of the American Institute of Certified Public Accountants in stockpiling questions in Theory of Accounts for the CPA Examinations. The Committee actively encourages all members of the Association to prepare questions and model answers of the type which the members think should be used in future examinations.