Reviews the book "Intermediate Accounting," by W.E. Karrenbrock and Harry Simons.

Abstract The faculty residency program is growing each year and is an important means by which accounting teachers can keep abreast of the dynamic profession of which they are a part. This program is not new nor is the interest of the American Accounting Association in the program of recent origin. Previous to 1955 some attempts had been made by the Association to encourage the development of a program of faculty fellowships. The experience of the Committee on Faculty Residency would indicate that the most satisfactory arrangements can be made directly between interested faculty members and the various firms. The program apparently should be localized with participation by deans and department chairmen in encouraging their personnel to be developed in their local area of the U.S. and in the fields of interest best suited to the school and teachers. It should be commented that not only the national firms of certified public accountants but also many local firms are interested and are participating in the program.

Abstract The subject area of "Consolidations" offers itself as a most suitable workshop for testing many of the notions of accounting. Yet the usual textbook solution involves so much busy work that the student has little remaining time or energy to benefit from theoretical inquiry. Indeed, the drudgery involved in the initial preparation of the worksheet may be sufficient to divert intellectual attention! Another obstacle to the learner is found in the multi-chapter approach to the subject found in many textbooks. With this approach, the student works largely with small discrete parts of the whole. Ordinarily this might be desirable; here, however, his attention is best directed to the whole problem since the answers to the parts are relevant only in the context of the whole. It is usually true that by the time a student undertakes the study of consolidations, he has an extensive and thorough background in accounting methodology and theory. The question as to the proper method for disposition of minority share of inter company profit of the three listed earlier is deliberately not raised here. Probably the answer relates to the purpose of the consolidated statements.

Abstract This article focuses on determining priorities for cash distribution in partnership liquidation. Students in the Principles of accounting course are introduced in partnership liquidation to the problem of cash distribution using a situation in which all assets are sold at once, liabilities are liquidated, and cash is distributed to the partners cash is distributed to the partners. Priority order has no importance but it points out, and the instructor should emphasize, that payment of cash on the basis of the capital account balances is now equitable because gains and losses have been distributed according to the partnership profit and loss sharing ratio. The author has developed another method which compares percentage of capital to the profit and loss-sharing ratio. By inspection it can be seen that the capital balances are not in the same ratio as the profit and loss-sharing ratios. Although it could be seen by inspection that the capital account balances are not in the profit and loss-sharing ratio the computation shows us what the capital account balance ratios are.

Abstract This article summarizes the information provided by 95% of the living accounting graduates of Drake University, Des Moines, Iowa who responded to a written questionnaire during the winter of 1959-60. This survey resulted in considerable data on occupation by function, job titles, geographical location, and income of accounting graduates. Approximately sixty-two per cent of all accounting graduates over this 38 year span are currently engaged in accounting work of some type. An additional twenty six percent are in some phase of management, including many who are doing accounting work at that level. The next largest group, totaling six per cent is engaged in sales or sales management. The remaining six per cent of the graduates are in other occupations. Income statistics were reported for over 90% of the 544 graduates covered. Although statistics were compiled for each graduating class, only the classes of 1929, 1939, 1949, and 1959 are presented here. Analysis of income data for all graduating classes would seem to indicate that accounting graduates employed in public accounting receive considerably greater income on the average both ten years and twenty years after graduation than those in other types of jobs.

Abstract Reviews the book "Audits and Examinations, Standards and Procedures," by Christian Oehler.

Abstract This article focuses on an accounting course for majors and non-majors. The standard elementary accounting text is designed to suit the needs of accounting majors only. Such a text necessarily contains much technical material and is designed for two 3-credit courses covering one academic year. Hence at institutions where only a standard course is offered, many students with a less than professional interest in accounting are probably discouraged from taking any accounting courses. The standard text starts with the assumption that the student has no knowledge of accounting and very little knowledge of business practice. It takes him through as much theoretical and practical material as can be fitted into that period of time, theory and practice being blended or alternated. Neither can be properly studied without the other. A student who really wants merely an introduction to accounting and business practice must, therefore, ordinarily take a full year course. This problem points up the need for a one year course, the first semester of which will serve as a survey course for the non-accountants as well as an introductory course for the accounting major.

Abstract This article presents problems and their solutions prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the first half of the Certified Public Accountant examination in accounting practice on November 2, 1960. Candidates were required to solve all problems. One of the question was, "Prior to January 1, 1959, ABC Company, a wholly-owned subsidiary of XYZ Company, conducted a business of importing hemp and fiber for resale purposes. As of January 1, 1959, ABC Company changed its business by entering into an agency agreement with the parent company whereby all transactions of ABC Company would be as agent for the purposes of purchasing and selling hemp and fiber for the account of XYZ Company as principal. The agreement provided, among other things, that ABC Company receive $1.80 a ton for all hemp and fiber purchased for XYZ Company, including the beginning inventory. The beginning and ending inventories were priced at $7.15 and $7.20 per hundred pounds, respectively. The average prices per hundred pounds for purchases, as recorded in the books of account after the adjustment for ending inventory, and sales were $7.18 and $7.27, respectively.

Abstract The course program herein offered is a possible path for accounting to follow in seeking its role in answer to the challenge thrown out to business education. It should, perhaps, not be called a program for it is much too incomplete for such a formal characterization. It is intended, rather, as a point of departure from a pattern of teaching which, without question. must be revised in order to meet the demands which are increasingly being leveled at it. It is to be hoped that many different paths will be attempted and there is much evidence in the accounting departments of our universities that such will be the case.

Abstract Fundamental income tax concepts should be taught in the elementary accounting course. The important reasons for this contention are: (1) Students are interested in the subject of income tax, and they have a need for tax knowledge. (2) Some accounting topics are taught better through the comparison of income tax and conventional accounting treatment. (3) A benefit may accrue to the teaching of the income tax accounting courses since accounting students will bring a better grounding in tax fundamentals to the course. Greater depth of treatment may be possible than is presently the case in courses in income tax accounting. (4) Students majoring in business education will be better prepared for their teaching duties.