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.