Some Problems in the Estimation of Personal Savings and Investment Get access C. T. Saunders C. T. Saunders London Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 22, Issue 2, 1954, Pages 109–128, https://doi.org/10.2307/2296286 Published: 01 January 1954

IN a recent paper, Domestic Production and Foreign Trade; the American Capital Position Re-Examined, 1 Professor Wassily Leontief utilizes materials drawn from his wellknown input-output studies to fill one of the more conspicuously empty economic boxes, namely: the actual structural basis of international trade. The general theoretical principle of comparative costs, long with us, indicates the advantage to be gained from a suitable allocation of productive resources in each of the countries engaged in trade. But we have had so little systematic knowledge of the productive structure of our own or of any other national economy that the application of such general theoretical principles to the analysis and explanation of actual foreign trade relationships has been practically out of the question. For practical conclusions, we have been forced back on common sense. Thus:

The article focuses on various problems of professional examinations in accounting. 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 Accountants examination in accounting practice on May 13, 1954. The candidates were required to solve all problems in four and a half hours. The total weight assigned to the three problems is 50 points. Weights were not assigned to the individual problems but a suggested time for each problem was given. In one of the problems details of a hypothetical company, Reese Extract Company which produces flavoring extracts and spices for food products has been given. The Company has been successfully operated for many years and carries an extensive line, but vanilla extract is its major product. The details of periodic inventories and other financial details has been given. The examinees are required to prepare manufacturing statement showing costs, units, and prices by processes and computations showing the rebate to be claimed from the federal government for the period and the amount of deferable tax applicable to the inventories which have not gone to the packaging department.

The article presents problem prepared by the Board of Examiners of the American Institute of Accountants and presented as the first half of the Certified Public Accountants examination in accounting practice on May 12, 1954. The candidates were required to solve problem 1 and 2 and any three of the remaining four problems in 50 points. The first problem is related to review of tax return. Candidates are required to prepare a schedule showing computation of the amount of the apparent discrepancy by using the given information. The second problem requires the examinee to prepare a formal balance-sheet and income statement of a manufacturing firm from the given records of transaction provided in the problem. The third question requires the examinee to compute the gross profit percentages, reproduce the ledger accounts for installment contracts receivable in T-account form and calculate net loss on defaulted accounts. In addition to this the examinee is required to prepare a schedule showing the realized gross profit.

The article presents five problems, which 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 November 4, 1953. The candidates were required to solve problems 1 and 2 and any two of the remaining three problems. The weights assigned were: problem 1, 15 points, problem 2, 15 points, problem 3, 10 points, problem 4, 10 points, problem 5, 10 points. The time allowed was four and a half hours. A suggested time schedule to solve the problem 1 was 45 minutes, problem 2 was 75 minutes, problem 3 was 45 minutes, problem 4 was 30 minutes and problem 5 was 60 minutes. In problem 1 students were asked to audit the given company's book for the past three years, with the help of data given in the problem. In another problem students were asked to compute the unit sales price with the help of data given in the problem. Full solution of each problem is given in the article with description.

This article presents an account of questions prepared by the Board of Examiners of the American Institute of Accountants that were presented as the second half of the C.P.A. examination in accounting practice on November 5, 1953. The candidates were required to solve all problems in four and a half hours. The weights assigned were: problem 1, 12 points; problem 2, 8 points; problem 3, 30 points. Questions relate to federal income taxes were also in the examination. Parts (a) and (b), dealt with items of gross income and deductions, respectively, and were to be answered true or false. However, in not more than one sentence, a candidate was allowed to give the reason for the conclusion where an explanation seemed appropriate. The merit of the explanation was to be considered if given. The first question required candidates to prepare journal entries to record at December 31, 1952 the recognition of profits and any other adjustments arising from the data provided for a given company. Secondly, to give complete explanations in support of entries and Give one acceptable alternate method of handling the repossession and discuss merits of it.

I. Introduction, 603. — II. Variations in factor inputs that are less than proportionate to changes in output, 604. — III. The influence of risk on the scale of operations, 607. — IV. More fundamental difficulties with constant factor proportions, 608. — V. The management factor and economies of scale, 611. — VI. Conclusion, 612.