The Accounting Review Vol. 28 No. 1 1953
PROFESSIONAL EXAMINATIONS.
Abstract
This article presents questions and answers related to the problems, which were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the November, 1952 C.P.A. examination in accounting practice. The candidates were required to solve problems 1 and 2 and one of the remaining three problems. The weights assigned were: problem 1, 20 points; problem 2, 18 points; problems 3, 4 or 5, 12 points. A suggested time schedule is given as: Problem 1: 100 minutes; Problem 2: 80 minutes; Problem 3: 60 minutes; Problem 4: 40 minutes; Problem 5: 30 minutes. The C Company is planning a pension system for certain of its employees. It wishes to provide funds for meeting the payments under the pension plan and asks you for assistance. The company does not contemplate making any pension payments under the plan until January 1963. Starting on January 1, 1953 and continuing for ten years, the company will deposit $10,000 a year in a special fund. On January 1, 1952, the company wishes to make a lump sum deposit of an amount sufficient to provide the remaining funds needed for meeting the pensions. It is expected that all the above funds will earn 3% interest compounded annually during the entire life of the fund. The question is to compute the amount of payment which should be made on January 1, 1952. In response to this question, the article presents a balance sheet.
- DOI
- 10.2308/tar-7087742
- Volume
- 28
- Issue
- 1
- Pages
- 128-140
- Language
- en
- Sources
- openalex crossref