I. The causes of the British crisis, 32. — II. Pent-up demand and inflation 33. — III. Decontrol, military commitments and the crisis, 37. — IV. The elements of a solution, 50. — V. Conclusions, 60.

The article presents information about professional examinations for a department for students of accounting. The following problems were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the May, 1949 Certified Public Accountant examination in accounting practice. Candidates were required to solve all problems in four and a half hours. A suggested time schedule is also given in the article. Some problems are the condensed balance sheets of company A, B and C were prepared as of December 31, 1948. The stock of Company C was acquired by Company B on January 31, 1947. Since that date Company C has had total earnings of $28,400 and paid cash dividends of $40,000. Company B has credited all dividends received to its income account. Company A acquired the stock of Company B on December 31, 1948. Students were asked to prepare the journal entries necessary for the preparation of a consolidated balance sheet of Company A and subsidiaries as of the close of business December 31, 1948. Show all supporting computations in good form.

The article presents problems that prepared by the Board of Examiners of the American Institute of Accountants and were presented as the second half of the May, 1949 C.P.A. Examination in accounting practice. The candidates were required to solve problems 1 and 2 and either problem 3 or 4. One of the question provided information that the Rheta Rose Manufacturing Company produces an item which it sells direct to consumers under its own brand. The item sells at $12.50 per unit, which is a long-established price. Due to a general decline in business activity, sales are currently being made at the rate of 5,000 units per month which is only 40% of the normal productive capacity of the plant of the company. The question includes An analysis of the costs of the company for a recent month, during which only 4,000 units were produced and 5,000 units sold. An offer has been received from a chain store by the treasurer of the company to purchase 5,000 units a month of the product with only immaterial modifications, to be shipped and billed to the individual stores. The items would be sold under the store's label and would be packed and shipped as directed by the chain at their expense.

The article presents problems that are 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 in November, 1948. The candidates were required to solve all problems. One of the question is that the Waverly Manufacturing Company has decided to change its method of distributing factory burden to its products, all of which are manufactured on special order. An appropriate departmental rates, based on the company's operations for the first half of 1948 is to be developed and to illustrate their use by determining the cost of Job Order No. 987 by applying the rates you develop. Another question is that monthly cash budget for AB Trading Company for the three months ending March 31, 1949. AD Trading Company purchases merchandise on terms of 2/10, n/60, and regularly takes discounts on the tenth day after the invoice date. It may be assumed that onethird of the purchases of any month are due for discount and are paid for in the following month is to be prepared from the information given.

The article presents problems that were presented as the second half of the November, 1948 C.P.A. Examination in accounting practice prepared by the Board of Examiners of the American Institute of Accountants. Candidates were required to solve problem 1 and either problem 2 or problem 3 in four and half hours. The weights assigned were, problem 1, 30 points and for problem 2 or problem 3, 20 points.

In February 1948, upon the request of Ben D. Wood, Director of the College Testing Program of the American Institute of Accountants, its President appointed a Test Advisory Committee of this association. The committee was created to work with the Committee on the Selection of Personnel of the American Institute in the preparation of new tests and to act as adviser upon such matters as the Institute committee might place before it. In the article, the author discusses briefly the effects of any national, regional, or wide-range testing program on accounting education, for the purpose of the present discussion, a mythical program. Certain it is that at present people have neither educational nor instructional equality in several institutions, and certain it is that they should pause to restudy methods. Accounting in theory and in practice has grown by leaps and bounds, but much of the educational method has not kept pace with it and people must look forward to more coordination and less variability in their instruction. A testing program, worthy of the name is one means toward the end people should be seeking.