Liability, Deferred revenue, Breakage, Accrued expense

Reviews the book "A Guide to Management Accounting," 4th ed., by H.W. Broad and K.S. Carmichael.

Reviews the book "Readings in Accounting Theory," by Paul Garner and Kenneth B. Berg.

Understanding of the significance of the distinction between the definition and measurement of income may be improved by an awareness of the structure of the process by means of which one moves from the abstract region of theoretical constructs to the reality associated with operational definitions. Once this structure is perceived, alternative empirical pro positions which are considered relevant to the income concept-specificially those found in the technical literature of accounting and economics-may be attached to this skeletal framework for purposes of experimentation and evaluation. In this manner, one would expect important empirical issues to be more clearly identified, and direction thereafter to be given to research aimed at explicating the apparent consequences and relative weights of these issues. Not unexpectedly, problems beset this rather unique approach to the analysis of income metatheory at both stages. In the absence of rigorous quantitative expressions of initial, intermediate, and final states of reasoning by the individual theoretician or practitioner, the structure of this theory cannot be directly induced from explicit formulations. Perforce this leads us back one step to the formulator himself-about whom current research into the nature and simulation of human thought processes has provided some interesting insights and hypotheses for our problem. With the additional aid of several observations concerning research methodology, measurement processes, and purposive behavior, a tentative structure was outlined. In the second stage of our overall approach, the principal problem is one of dimension. Even delimiting the area of our attention to accounting and economics, the number of empirical propositions is untenably large.

The Baumol model, 423. — The Tobin model, 427. — Conclusion, 435.

This article presents a list of problems that were prepared by the Board of Examiners of the American Institute of Certified Public Accountants (CPA) and were presented as the second half of the CPA examination in accounting practice on November 3, 1966. The candidates were required to solve the first four problems and either problem five or six. Time allocated for first problem is 30 to 40 minutes, second problem is 50 to 60 minutes, third problem is 40 to 50 minutes, fourth problem is 50 to 60 minutes and 5th or 6th problem is 50 to 60 minutes. All questions are pertaining to the taxation of partnerships and the answer is to be selected in accordance with the current internal revenue code and regulations. Examinees are instructed to select one answer for each question and their grade will be determined from their total score of correct answers. In the end of the test solutions are also provided to help the examinee. All the questions of the test deals with the internal revenue code and regulations.

This article presents several questions and answers that were prepared by the Board of Examiners of the American Institute of Certified Public Accountants (CPA) and were presented as the first half of the CPA examination in accounting practice on November 2, 1966. The candidates were required to solve all problems. In one of the questions,the president of Eastern Co. wants guidance on the advisability of eliminating product C, one of the company's three similar products, or investing in new machinery to reduce the cost of product C in the hope of reversing product Cs operating loss sustained in 1966. The three similar products are manufactured in a single plant in about the same amount of floor space and the markets in which they are sold are very competitive. It is required to prepare a schedule showing the contribution of product C to the recovery of fixed costs and expenses for the year ended October 31, 1966. Assume that each element of cost and expense is entirely fixed or variable within the relevant range and that the change in inventory levels has been negligible.