PROFESSIONAL EXAMINATIONS.
Abstract The article presents problems related to accounting students, presented at the second half of the examination in accounting theory and practice prepared by the Board of Examiners of the American Institute of Accountants. The first problem focuses on the issue of property transfer after the death of a certain person who has left his company and shares for her sole beneficiary. The court administering the estate of her deceased husband ordered her certain offers, to pay in full indebtness of his deceased husband's company, to submit to the court at its next session a charge and discharge statement. This company has sold certain amount of its shares, pursuant to appropriate resolution of its stockholders and directors, paid its debts and credited its shareholders with their proportion of the net worth. The company had been in existence for a period of five years but paid no preferred dividends so that an amount of $1,600,000 was in arrears. It has been asked to prepare a balance sheet, after giving effect to the recapitalization plan. The examinee is told that the executrix has paid the preferred claims but he is left to decide for himself as to which claims are included in that category. In most states taxes, funeral expenses and legal services rendered for the estate are regarded as preferred claims and they were so regarded in the above solution.
- DOI
- 10.2308/tar-7060915
- Volume
- 14 (1)
- Pages
- 65-75
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref