Abstract The article focuses on the extent to which predictions can be made about certified public accountants (CPA) examination results. Studies of the use of the Institute sponsored Orientation and Achievement Tests as a means of making such predictions have produced encouraging results. On the basis of these studies, which are of limited scope, it appears that reasonably accurate predictions can be made in many instances. There are many benefits which will accrue to the profession and to individuals if fairly accurate predictions can be made that a particular individual should be able to pass the CPA examination; that another individual is unlikely to pass, and that still another one has a slight chance to pass. Such predictions would aid appreciably in guidance work, and would be of value to employers. Predictive devices might be used by state examining boards in various ways. Boards might be aided in their efforts to encourage potentially able men to continue preparation and to discourage those who are obviously not ready to take the examination as well as those who may never qualify. Predictive devices might aid considerably in reducing failures.

Abstract This article comments on inventory pricing and changes in price levels. Ideally, the measurement of accounting profit involves the matching precisely of the identified costs of specific units of product with the sales revenues derived there from. Secondly, where conditions are such that precise matching of identified costs with revenues is impracticable, identified cost matching may be simulated by the adoption of an assumed flow of costs. Also, a flow assumption can be realistic, in that it reflects the dominant characteristics of the actual flow of goods; thus it may reflect an actual dominance of first-in, first-out, average, or last-in, first-out movement. A flow assumption can be artificial, on the other hand, in that it premises a flow of costs that is clearly in contrast with actual physical movement. However, the periodic income of a business enterprise is computed by deducting from the revenues of the period the costs which are properly associated with those revenues. In the case of certain costs, for example sales commissions, the relationship to the revenues of a period is quite direct and the matching process is accomplished with a minimum of uncertainty.

Abstract This article discusses the information on the paragraph no. 5. The Paragraph No. 5 under "Expense" in the 1948 Revision of Accounting Concepts and Standards Underlying Corporate Financial Statements of the U.S. reads that An assignment of all or a portion of the cost of an asset to expense, made in good faith after considered judgment and after competent review, in accordance with the accounting concepts and standards of the time, is not subject to reversal in a later period. Errors of a mechanical and non-judgment nature should be corrected in the period of their discovery. The Committee on Concepts and Standards is in agreement with the apparent basic purpose of this statement to reduce the possibility of manipulation of the net income calculation through reversals, revisions and reaccounting of past depredation charges and other amortizations. At the same time it recognizes that a position unalterably opposed to the correction of errors of judgment is both arbitrary and difficult to defend.