This article presents questions on accounting which were prepared by the Board of Examiners of the American Institute of Accountants. These questions were presented as the first half of the certified public accountant examination in accounting practice on November 7, 1943. Time limit and rating of each question is also given. In the first question, from the information given, examiners had to prepare income statements on the accrual basis for the fiscal year ended January 31, 1944, and for the seven months ended August 31, 1944. The second question asked the examiners to prepare working sheet showing balances of accounts of Municipal Garage Revolving Fund of Rhodes City as at February 28, 1945. The third question read that Johnson Meat Packing Co. desired to study its distribution costs which in the aggregate constitute 65% of the total cost of doing business. From the information given in the question, examiners had to prepare an exhibit showing the allocation of total distribution cost per hundredweight of meat products for each size-class of order. The article also provides solutions to these problems.

This article presents several problems prepared by the Board of Examiners of the American Institute of Accountants in the U.S. and were presented as the second half of the Certified Public Accountants examination in accounting practice in May, 1946. The candidates were required to solve both problems. The weights assigned against each problems were specified. The time allowed was four and a half hours. A suggested time schedule was also provided. One of the questions is related to the preparation of a corrected balance-sheet of the Acme Trading Company as at December 31, 1944. Another question is related to taxable net income of Mart Co. Inc. for purposes of the 1945 corporation income tax return in the U.S. Mart Co. Inc. is a dealer in personal property and, for purposes of the U.S. income tax, reports gross profit on sales on the installment basis. Accordingly, gross profit realized and reportable each year is X dollars Worthless accounts are deducted in the year of default, a provision to a reserve for bad debts may not be deducted. With respect to repossessions, a deduction may be taken to the extent of the excess of the unrecovered cost over the salvage value of the repossessed merchandise.

The following problems were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the second half of the Certified Public Accountant (CPA)examination in accounting practice on November 8, 1945. One of the questions asked was to prepare a consolidated balance-sheet of Holding Co. and its wholly-owned subsidiary as at July 31, 1944. The response to this began as; on June 30, 1944, A &Co;, partnership (profits and losses shared equally), and X Corp. consummated a consolidation agreement pursuant to the terms of which Consolidated Co., newly organized and incorporated with an authorized capital of 20,000 shares of $100 par value common stock, acquired for its common stock issued in the amount of $950,000 to A &Co; and $550,000 to X Corp. certain net assets of the companies. A &Co; All net assets (including buildings at an appraised sound value of $1,100,000), excluding notes payable X Corp. All net assets excluding buildings. The article includes the balance sheet as response to the question.

This article presents accounting problems which were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the Certified Public Accountants examination in accounting practice on May 15, 1946. It gives an information and asks to prepare an income statement showing therein appropriate manufacturing cost variances of Bunson Co., for January, 1946, supported by journal entries of transactions for the month. The Bunson Co. makes unit M. The manufacturing of unit M is based on three successive and continuous operations in which the manufacturing cost of such unit is developed. The Eunson Co., operates a cost accounting system based on standard costs which are incorporated in the manufacturing cost accounts. The differences between standard costs and actual costs are reflected in appropriate variance accounts, namely, material price, material usage, direct labor rate, direct labor time, and over-all manufacturing overhead. The material price variance is assumed to be realized at the time of purchase, irrespective of time of usage.