Journal Article European Unification and the Dollar Problem Get access T. Balogh T. Balogh Balliol College, Oxford, Oxford University Institute of Statistics Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 65, Issue 1, February 1951, Pages 110–119, https://doi.org/10.2307/1879502 Published: 01 February 1951

This article presents problems, which were prepared by the Board of Examiners of the American Institute of Accountants, and were presented as the second half of the May 1951 C.P.A. Examination in accounting practice. The candidates were required to solve problems 1 and 2, and either problem 3 or problem 4. The time allowed was four and a half hours. The weights assigned were, problem 1, 10 points; problem 2, 25 points; problem 3 or problem 4, 15 points. One of problem is being given as, "the Town of Big Springs had not been operating a public library prior to October 1, 1950. On October 1, 1950, James Jones died, having made a valid will which provided for the gift of his residence and various securities to the town for the establishment and operation of a free public library. The gift was accepted by the town. The library funds and operation were placed under the control of trustees. The terms of the gift provided that not in excess of 3 ,000 dollar of the principal of the fund could be used for the purchase of equipment, building rearrangement, and purchase of such "standard" library reference books as, in the opinion of the trustees, were needed for starting the library. Except for this 5,000 dollar, the principal of the fund is to be invested and the income therefore used to operate the library in accordance with appropriations made by the trustees."

This article presents problems that were prepared by the Board of Examiners of the American Institute of Accountants, and were presented as the first half of the May 1951 Certified Public Accountants Examination in accounting practice. Time limit set for the examination was four hours. Questions were provided unequal weightage. Candidates are required to solve all the problems provided in the examination. Question provided in this examination fall under four categories. In the first category, the examinee is asked to calculate the book amount of inventory destroyed by fire in a wholesale firm. The candidate is also asked to assess the amount due from insurers of the company in settlement of the total loss of assets, by estimating the book value of furniture and fixtures. Another problem requires the candidate to estimate the bonus for workers based on their production records. There is another problem asking the candidate to prepare cost allocation and prospective profit for a particular product fully manufactured by a particular firm, based on some financial information.

This article presents questions, prepared by the Board of Examiners of the American Institute of Accountants and were presented as the second half of the November, 1950 Certified Public Accountant. One of the question is, Adams, Baker, Charles and Day are partners. Their interests in the capital and their profit and loss ratios are as follows: Adams's is 40 percent, Baker's is 30 percent, Charles's is 20 percent, Day's is 10 percent. To provide a means whereby the remaining partners might purchase a deceased partner's interest from his estate, a life insurance program was inaugurated whereby life insurance proceeds would be paid to the remaining partners in proportion to their percentage ownership in the partnership. Since each partner was in effect insuring the life of each of the other partners, it was agreed that no partner would pay any part of the premiums on policies covering his own life. One are to prepare the correcting entry that should be made to the partners' capital accounts in order to reflect properly the agreement as to the insurance. Give supporting computations in good form.

The article presents some of the problems that were presented by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the November 1950 Certified Public Accountant Examination in accounting practice. The candidates were required to solve any five problems. One of the questions that were asked in the examination was about a man who used to live his family. The person received some incomes on the cash basis. Students were asked to calculate the amount that person is entitled as a deduction for contributions in connection with the stock donated. In another question, Arthur Jacobs, a merchant, kept very limited records. Purchases of merchandise were paid for by check, but most other items of cost were paid out of cash receipts. Accounts receivable were recorded only by keeping a copy of the charge ticket and this copy was given to the customer when he paid his account. An inventory of merchandise taken on December 31, 1950 showed $16,710 of merchandise on a cost basis. Based on the information, the students were required to prepare a statement of profit and loss for 1950, supported by all computations necessary to determine the sales and purchases for the year.