Reviews the book "C.P.A. Problems Complete Review Course," by Arnold W. Johnson and Evroul S. Germain.

Abstract The article presents questions and answers for the examination in theory of accounts of the November, 1959, Uniform Certified Public Accountants examination. The first question was related to depreciation of assets and its objectives. The answer to the question is given. Accounting for depreciation is the process of allocating the cost of plant assets of limited life over their estimated useful lives. The chief objective is to charge against each period's revenue its fair share of the depreciable portion of the cost of such assets. This portion is original cost minus any expected scrap or trade-in value. The time period is affected by obsolescence to the extent predictable, by accidents, by repair and maintenance policy, by extent of asset usage, and other factors. Recording port assets at cost less accumulated depreciation on the balance sheet. Decreasing charge methods such as sum-of-year's-digits or fixed per cent on diminishing base are consistent with this objective. Appropriateness of the selection depends on circumstances of asset use.

Abstract The theory of Accounts section of the November, 1958, Uniform Certified Public Accountant Examination was given on Friday, November 7, 1958, from 1:30 to 5 :00 P.M. There were two groups of questions; all five questions in the first group were required; two were to be selected from the three in the second group. To save candidates the time of computing their own time budgets for each question, notations of estimated time requirements were furnished for each question to be answered separately and in the aggregate by all questions to be answered out of a group where options are involved. The estimated time allowances were approximately proportional to their point value, the total of which for this examination is 100 points. Each numbered transaction was to be considered completely independent of the others and its related answer should be based on the effect(s) of that transaction alone.

Abstract The article reports that the examination in theory of accounts of the May 1959, Uniform Certified Public Accountants was given on May 15, 1959. There were two groups in the question. The estimated time allowances are approximately proportional to the point values of the questions, the total of which for this examination is 100. The examinee is required to answer all questions in the first group. In group one of the question paper, on a lined sheet of paper the examinee is required to number the first ten lines from 1 through 10. The examinee is to select the graph, which matches the numbered factory cost or expense data and write the letter identifying the graph on the appropriate numbered line. In the second question, in the preparation of the consolidated balance sheet of a hypothetical parent corporation and its subsidiaries a decision must be reached concerning the inclusion or exclusion of each of them as a member of the consolidated group. A common criterion is the percentage of voting stock owned by the parent company. Answers to every question are also given in the article.

Abstract Systems design should be founded on at least five more or less fundamental considerations, each of them in turn supported by subsidiary factors which have been stated here in the form of maxims or principles. A concise statement of the five basic considerations follows. The designer of an accounting system should constantly bear in mind that his system should: 1. Satisfy the information needs of those associated with the particular entity. 2. Provide the information when needed and at relatively low cost. 3. Incorporate features of check and control insuring fidelity of recording and protection of assets. 4. Be uniformly and consistently implemented. 5. Be capable of accommodating changes with a minimum of redesign.

Abstract In view of the increased attention being paid by the public accounting profession to managerial service engagements one can argue that really the public accountant of tomorrow must be both what he has been in the past plus having a training and viewpoint similar to that of an industrial or managerial accountant. This argument seems to have some validity. If it does, it would follow that the character of the Committee on Professional Education examination ought to continue to change and the pace of change should perhaps be accelerated. The emphasis of some questions could be shifted; the examination could be lengthened to include added subjects; or these subjects could be added and the time allotted to traditional subjects could be reduced. Of course the examination would still place heavy emphasis on traditional subjects such as auditing, commercial law, governmental accounting, taxes, and various financial, cost, and fiduciary accounting material. However, it might also emphasize statistical analysis, economics and economic indicators, managerial policy, controllership, budgetary and cost analysis and the like. It is recognized there could be some legal impediments to such changes, but these are not insurmountable.

Reviews the book "1955 U.S. Master Tax Guide."

Abstract Reviews the book "Essays in Honor of William A. Paton," edited by Stephen A. Zeff, Joel Demski and Nicholas Dopuch.

Abstract The article reviews the book "Corporate Financial Reporting: The Issues, the Objectives and Some New Proposals," edited by Alfred Rappaport and Lawrence Revsine.

Abstract Solution of application of funds statement problems seems to be accomplished by many students more as a result of their memorization of rules and processes than because they have a basic understanding of what the statement seeks to accomplish. The student who understands the essential nature of the funds statement is not baffled easily when confronted by a unique situation, which his previous homework or classroom demonstration problems did not parallel. In an effort to achieve the desired sound grounding in fundamentals of funds statements the writer has reduced his first class discussions to a very elementary level. The result has been more satisfactory than previous efforts to teach the topic by conventional and more erudite approaches. The extreme simplification process is presented primarily on the blackboard. The writer has found that after use of this technique and a few transitional remarks the average student better understands the usual application of funds worksheet and works problems from reason and not by rote.