The article presents problems that were prepared by the Board of Examiners of the American Institute of Certified Public Accountants (C.P.A.) and were presented as the first half of the C.P.A. examination in accounting practice on May 18, 1960. One of the questions asked was regarding Houston Factors Inc. The company was incorporated on December 31, 1959. The capital stock of the company consists of 100,000 shares of $10 par value each, all of which was paid in at par. The company was organized for the purpose of factoring the accounts receivable of various businesses requiring this service. The paper asks to prepare a balance sheet and an income statement for Houston Factors Inc. as at March 31, 1960. The Rickard Co.'s fiscal year ended March 31, 1960. Your examination the preceding year disclosed that the internal control was weak. The staff and organization was unchanged. The office manager was unable to reconcile the bank statements at March 31st, and opened an account called "Exchange" for $170 in order to balance his preliminary trial balance. The paper asks to reconcile both bank balances to the adjusted cash balances as of March 31, 1960.

The article presents accounting problems prepared by the Board of Examiners of the American Institute of Certified Public Accountant (CPA) and were presented as the second half of the CPA examination in accounting practice in November 5, 1959. The candidates ere required to solve the problems 1 and 2 and any two of the remaining three problems. The first problem is related to preparation of cost study to determine economical feasibility of a publishing company. The second question is related to deriving reasons for the changes in the working capital of a company from its balance sheet. It requires application of funds statement, supported by a schedule of working capital changes and a cash flow statement, supported by a schedule detailing the cash provided or applied by profits or losses from operation. The third problem requires preparation of a schedule of labor production, total and unit costs incurred in production and schedule of detailed material labor and manufacturing costs assigned to the units left in process.

The following problems were prepared by the Board of Examiners of the American Institute of Certified Public Accountants and were presented as the first half of the C.P.A. examination in accounting practice on November 4, 1959. One of the major problem includes The Hale-Haworth-Nye Partnership was formed in 1950 with partner Hale contributing the major portion of the capital, and partners Haworth and Nye providing the knowledge and experience necessary for the operation of the business. The Unstable Furniture Company commenced business operations on January 1,1957. All sales are made on installment contracts and inventory records are on a periodic basis. Contract receivables are kept separate by years. At the end of each year adjustments for unrealized and realized gross profits are made through a Deferred Gross Profit on Installment Sales account. The Stanger and Theeler Company established a non-contributing profit-sharing trust for its employees, effective January 1, 1956. Contributions to the trust have been determined to be allowable as a deduction on the company tax return.