The article presents various problems, which has been asked in the accounting examination. The problems 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 May 16, 1962. The candidates were required to solve all problems. The suggested time allowances were as follows, problem 1, 30 to 45 minutes; problem 2, 40 to 50 minutes; problem 3, 25 to 35 minutes; problem 4, 40 to 60 minutes and problem 5, 60 to 80 minutes. Some of the problems include, A, who is single, supports his 70-year-old father. During the year A paid doctors' fees of 1,250 dollar in connection with an illness of his father. A's adjusted gross income for the year was 10,000 dollar. Here to find out A's entitlement to a medical expense deduction; In 1961 a farmer sells for 10,000 dollar five acres of land which had 500 bushels of grain standing on it at the time of sale. The land cost 3,000 dollar in 1941 and his expenses of planting and raising the grain were 250 dollar. The fair market value of the standing grain was 1.00 dollar per bushel. Here to find out the capital gain.

The 1961 annual meeting of the American Accounting Association was held on August 28, 29, and 30 in Austin, Texas with the College of Business Administration of the University of Texas as host. At the Plenary sessions on Tuesday and Wednesday, the following speakers discussed the topics indicated: "Accounting Innovation and the Psychology of Change," by Gardner M. Jones, Michigan State University; "Principles of Divisional Income Determination," by Gordon Shillinglaw, Columbia University; "New Directions in Tax Administration," by Mortimer M. Caplin, Commissioner of Internal Revenue, United States Treasury Department; "Business Information Systems," by Robert E. Pfenning, Comptroller, General Electric Company; "A Critique of Standard Costs," by David Solomons, University of Pennsylvania; "Accounting Data for Purposes of Control," by Robert K. Jaedicke, Stanford University; and "Should We Discard the Income Concept?" by Maurice Moonitz, Director of Research, American Institute of Accountants.

This paper makes four points: (1) The justification of interest methods of depreciation is not attainment of a constant operating rate of return; rather, they are the only time-based methods of depreciation that (a) can avoid showing changes in reported net earnings over the life of the asset simply because recovered "depreciation funds" can interest, (b) can disclose the amount that can legitimately be paid out in dividends, and (c) can maintain parity between renting and buying fixed assets. (2) For these purposes the formula usually given for "the interest method" applies only to a special case. (3) It is easy to avoid the principal disadvantage of the interest method-neglect of increasing maintenance costs-by creating a surplus reserve according to certain formulas. (4) Price-level adjustments can be incorporated easily if desired, but the procedure usually used is valid only for a special case. It is often said that the principal reason for charging depreciation as a current expense is to allocate the cost of long-lived assets to individual accounting periods. But this is depreciation. The question remains:Why is it reasonable?

Reviews the book "Lexique-U.E.C.-Lexicon."

Reviews the book " Foundations of Accounting for Managerial Control," by Lawrence H. Malchman and Albert Slavin.

This article presents some comments on recently published research bulletins in the field of accounting. It first mentions chapter 9 of Research Bulletin #43 referencing the decision by the Accounting Principles Board that Accounting Research Bulletins issued by the predecessor committee on Accounting Procedure should be considered as "continuing in force with the same degree of authority as before." While conflicting statement occurred in the October 1961, Journal of Accountancy, expressing editorially that most of them will eventually be reviewed by the board but that it is not expected that many of them will be superseded in the near future. He further mentions chapter 4 of Bulletin #43, which relates to inventory pricing and includes the rule of cost or market. The author suggests that while other chapters of Bulletin #43 may eventually need revision, it appears that a revision of chapter 9 is most pressing to avoid confusion, inconsistency, and outright contradiction. Hence chapter 9 of Bulletin #43 should be among the first to be revised.

This article presents the problems asked in the second half of the Certified Public Accountants. examination in accounting practice on November 9, 1961, prepared by the Board of Examiners of the American Institute of Certified Public Accountants. Overall six problems were there and the candidates were required to solve problems 1 through 4 and either 5 or 6. Problem #1 relates to the Specialties Co., Inc., which is engaged in manufacturing and wholesaling two principal products. As their accountant, candidates have been asked to advise management on sales policy for the coming year. Two different plans, considetred by the management, either of which is believed to increase the volume of sales, reduce the ratio of selling expense to sales and decrease production costs, are given. The second problem requires to prepare a schedule for a partner of a partnership business. The third problem relates to a client, who reports for accounting and tax purposes on the accrual basis, given the details of his dividend income account. The fourth problem mentions a manufacture gewgawsing in three steps or departments. The Finishing Department being the third and last step before the product is transferred to finished goods inventory. And the final problem asks to prepare a worksheet for consolidated statements, while showing the investment and retained earnings accounts of the company. The article also presents the solutions for all the given problems.

The American Institute recognizes the great need for a better understanding of human relations. In some aspects, its functions are related to public relations. In the strict sense, neither one encompasses what we call "publicity." Also, neither should be confused with the techniques of personnel management. Some hold that dealings with client personnel come within the ambit of public relations, whereas human relations in public accounting encompass only those relationships of employers-employees. This paper treats all relationships as human relations. A factor of great encouragement is the acceptance by "small and medium-sized business" that the CPA is a natural as part-time controller and management consultant. It is in the field of management services that Human Relations will play-indeed, is already playing-a most important part. There are dozens of examples of how public and human relations can and do keep CPAs from pitfalls, and help them increase their practices, their income and their happiness.

The article presents questions and answers, which were prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the first half of the C.P.A. examination in accounting practice on November 8, 1961. The candidates were required to solve all problems. The suggested time allowances were as follows: Problem 1: 30 to 45 minutes; Problem 2: 20 to 35 minutes; Problem 3: 25 to 35 minutes; Problem 4: 50 to 70 minutes; Problem 5: 60 to 85 minutes. The answers should be selected in accordance with the Internal Revenue Code and Regulations. In response to how the bonus and transfer of stock should be handled when the president of the Ball Corporation accepts 100 shares of $100 par value common stock, held as treasury stock, as a bonus. The treasury stock, which had been reacquired by the Ball Corporation at $90 per share nine months earlier, had a market value of $93, it is suggested that they should be handled as business expense of $9,500.