This article presents 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 (C.P.A.) Examination in Accounting Practice on May 3, 1954. The candidates were required to solve problems 1, 2 and 3 and either problem 4 or problem 5. The total weight assigned to this section of the examination was 50 points. Weights were not assigned to the individual problems but a suggested time for each problem was given. The Bloom Florist Shops are owned and operated by Sumner Bloom in two separate locations. Mr. Bloom has called you in for assistance. He states that until two years ago he operated only a small card and flower shop in an adjoining town. At that time he opened a new and modern shop in the city and affiliated with the Florists Telegraph Delivery Association. Although he has had large gains in sales and profits in these last two years, Mr. Bloom has never effected any substantial improvement in his financial condition. He has looked into the problem from the personnel and physical standpoints and is satisfied with the honesty of the employees and the conformity of his product, service, and price with that of other florists. He asks that one look over the profit statement prepared for the prior fiscal year. It is his intention that this should be on a cash basis.

The article presents the problems prepared by the Board of Examiners of the American Institute of Accountants that were presented as the second half of the certified public accountant examination in accounting practice of November 4, 1954. The first problem of the examination presents a case in which books are kept on a cash basis. An apartment house purchased for $75,000 in June 1937, was sold on February 28, 1954 for $135,000. On account books, the accumulated depreciation to the date of the sale was $32,500. The escrow statements applicable to the buyer and the seller are shown in the article. The student is required to Prepare a journal entry to record the transaction on the seller's accounts books, prepare a journal entry to record the purchase on buyer's books, and prepare a schedule showing the gain to be reported by seller for federal income tax purposes. Multiple-choice questions are also provided in the examination. The students are required to select one correct answer for each question and to indicate their choice by placing an X in the appropriate space on the printed answer sheet.

The article presents a professional examination format on accounting. The problems in the article were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the C.P.A. Examination in accounting practice on May 18, 1955. The candidates were required to solve problems 1 and 2 and either problem 3 or problem 4. The total weight assigned to this section of the examination was 50 points and the examiners point out that the suggested time allowances for each problem are closely proportional to the point values of the various problems. The question number one asks the examinee to prepare a tax return for Fred Baker for the calendar year, 1954 on the Form 1040. The examinee is required to complete the return in so far as the information makes possible. The examinee should omit cents in the tax return and in all computations and schedules. As examinees are required to prepare the schedules in pencil to facilitate corrections. A worksheet is not required, but certain explanatory schedules should be prepared to support the claimed deductions or items of income.