Abstract The article presents theory problems and their solutions prepared by the Board of Examiners of the U.S. body American Institute of Certified Public Accountants and presented as certified public accountant examination in accounting practice on November 5, 1965. The candidates were required to solve all problems. The suggested time allowances for various problems were also given. Objective type and lengthy questions were given. Students were asked to state the period for recognizing benefits derived from the investment credit. The answer is that either over the life of the asset or in the year of acquisition. Another problem is about the business report of Superior Manufacturing Co. The company has used straight-line method of depreciating its plant assets. Students are given data calculated by the depreciation method to be used for income tax and stockholder reporting. They are asked that whether depreciation charges recover or create funds. The answer to the problem is that the purpose of depreciation accounting, as traditionally stated, is to spread the cost, less salvage, of tangible, long-lived assets used by an entity as an expense over their useful lives in a rational and systematic manner. The primary purpose is allocation of cost and presumed benefit; valuation is secondary. Cost is understood to include original acquisition and installation cost, plus betterments, additions, and extraordinary repairs. It may also include appraised values as in the case of donated fixed assets.

Abstract The article presents the theory of accounts portion of the May 14, 1965, Uniform Certified Public Accountants Examination by the Board of Examiners of the American Institute of Certified Public Accountants (CPA). Answers should be submitted by well-prepared candidates writing within the time limits prescribed. They do not necessarily include all elements for which credit might be given by the Advisory Grading Service of the American Institute of CPAs or by the various state accountancy boards charged with the responsibility of issuing CPA certificates. The first problem presents a graph describing the behavior of the cost, expense, income or valuation amount that would appear on a series of annual financial statements for each of the independent situations. All policy decisions and events that caused changes in the behavior patterns of the charted amounts took place in the middle of the time span portrayed in the graphs. The vertical axes of the graphs represent the annual dollar amount of cost, expense income or valuation, as the case may be, and the horizontal axes represent the passage of time. The axes intersect at zero.

Abstract The article presents the theory of accounts portion of the Uniform Certified Public Accountants Examination held in November 1964. In one of the questions, the students had to identify and discuss defects in the given financial statements with respect to terminology, disclosure and classification. The answer of one of the students discussed the term "reserve for doubtful accounts" which is no longer regarded as desirable. The term "reserve," where used at all, should be employed in connection with appropriations of retained earnings. The student wrote that combining sales and interest income to arrive at total revenue is acceptable where the single-step form of income statement presentation has been adopted; the remainder of the statement fails to follow this form and it would therefore be preferable to set out only the major revenue source at the top of the statement. Another questions asked to discuss the theoretical justification of the allowance method as contrasted with the direct write-off method of accounting for bad debts.

Abstract The article presents questions which appeared in the May, 1964, Uniform Certified Public Accountants (CPA) Examination. It was held on Friday, May 15, from 1:30 p.m. to 5:00 p.m. There were seven questions in all. The article also presents solution to the problems given in the question paper. Answers which follow are intended to typify those submitted by well-prepared candidates writing within the time limits prescribed. They do not necessarily include all elements for which credit might be given by the Advisory Grading Service of the American Institute of CPA or by the various state accountancy boards charged with the responsibility of issuing CPA certificates. One of the questions was related to expenditure. The candidates were asked to distinguish between capital expenditures and revenue expenditures, and their treatments in the accounts. They were also asked to distinguish between these two categories of expenditures and between their treatments in the accounts. The candidates were to discuss the impact on both present and future balance sheets and income statements.

Abstract The article presents some questions of theory accounts. The theory of accounts portion of the November 1963, Uniform Certified Public Accountants (CPA) examination was given on November 8, 1963. Suggested time allotments for questions are given in the article. Answers, which follow are intended to typify those submitted by well-prepared candidates writing within the time limits prescribed. They do not necessarily include all elements for which credit might be given by the Advisory Grading Service of the American Institute of CPA or by the various state accountancy boards charged with responsibility of issuing CPA certificates. In first section, all questions are compulsory. In the appropriate space on the separate answer sheet, candidates are required to blacken the space of the letter of the answer choice that best completes each statement. Candidates should use the special electrographic pencil for marking the answer sheet. Candidate has to mark only one answer for each numbered statement.

Abstract The theory of accounts portion of the November 1962, Uniform CPA Examination was given Friday, November 9. All questions were required to be solved by the candidates. A detailed note on all the questions and their respective answers is mentioned in the article. Suggested time allotments of all the questions were as follows: Problem 1, 25 to 30 minutes; Problem 2, 20 to 25 minutes; Problem 3, 20 to 25 minutes; Problem 4, 25 to 30 minutes; Problem 5, 25 to 35 minutes; Problem 6, 25 to 35 minutes; Problem 7, 25 to 30 minutes.

Abstract This article presents the problems asked in the theory of accounts portion of the November 10, 1961, Uniform Certified Public Accountants Examination. Overall there were 7 problems. Problem #1 asks to assist the chief accountant of a company in the preparation of a balance sheet, given various classifications suggested by the chief accountant for the balance sheet. The second problem asks to define "natural business year" and discuss briefly the reasons for changing the accounting period of a company to a "natural business year." The third problem relates to the recording of the leasehold and the liability on the tenant's books. The fourth problem requires to explain bond indentures and sinking fund. The fifth problem asks to give the journal entries for a companies stock option plan. The sixth problem asks to define "current operating performance. And the final problem belongs to the differences between taxable income and accounting income. The article also presents the solutions for all the given problems.

Abstract The article presents the theory portion of the Uniform Certified Public Accountants (CPA) examination held on May 18, 1962. The paper includes multiple-choice questions on accounting on the topics of realized income, matching costs and revenues, going concern concept, current assets, cost accounting, and lower of cost or market. One of the questions requires calculation whether the amount to be recorded for the dividend payable should be book value or market value. In one of the questions, the students are required to prepare a report for the president explaining the "quasi-reorganization." The report should include definition and accounting features of the procedure, the purpose of the procedure, under what conditions should it be considered, authorization necessary, and disclosure required in the financial statements. In a question the students are asked to describe the depreciation methods based on treating assets as units, and a group or as having a composite life. Answers to the questions are also provided.

Abstract The article presents several problems related to accounting, which were prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the second half of the C.P.A. examination in accounting theory on May 19, 1961. Some of the questions were based on the topic of consolidated statements of any company, like, whose financial position is represented by consolidated statements; consolidated statements and beneficiaries; proper consolidated statements of companies, etc. One of the problem states that a company P had 300,000 shares of stock outstanding. It owned 75% of the outstanding stock of T. T owned 20,000 shares of P's stock. The figure of P's outstanding stocks in the consolidated balance sheet has been asked. A question has been asked that is it acceptable accounting treatment to carry investments in subsidiaries not consolidated at cost. A question focuses on the issue of the profit increment of any company, but no valid reasons in support of this growth has been presented to the president by the accountant, as everything seems as stable as it looked when the company started.

Abstract This article focuses on the examination in theory of accounts of the Uniform Certified Public Accountants. There were two groups of question. In one of the question one is to indicate the nature of the account or accounts to he debited when recording each transaction using tile preferred accounting treatment by placing an "X" in the proper column on the answer sheet provided. Prepayments should be recorded in balance sheet accounts. Disregard income tax considerations unless instructed otherwise. The question includes facts like, the Talbot Co. spent $8,600 during the year for experimental purposes in connection with the development of its product. This is approximately the same amount that the company has been spending for this purpose annually for many years. The Placey Co. recently purchased land and two buildings for a total cost of $35,000, and entered the purchase on the books. Razing costs of $1,200 were incurred in removing the smaller building, which had an appraised value at acquisition of $6,200, in order to make room for new construction.