The Accounting Review Vol. 37 No. 4 1962
PROFESSIONAL EXAMINATIONS: ACCOUNTING PRACTICE.
Abstract
The article presents problems prepared by the Board of Examiners of the American Institute of Certified Public Accountants that were presented as the second half of the CPA examination in accounting practice on May 17, 1962. The first problem presents a case in which Lewis Co., a manufacturer of heavy machinery, grants a four year warranty on its products. The estimated liability for product warranty account transactions are provided. Additional information from the company's records at the end of the current year are also provided. The students are required to prepare the necessary adjusting journal entries giving effect to the proper accounting treatment of product warranty and federal income taxes. Another problem provided in the paper presents the audit of Lauren Corp. which has been completed and the preparation of federal income tax return for 1961 is in progress. Information and data developed during the audit are provided. The students are required to prepare a schedule showing the computation of taxable income for 1961.
- DOI
- 10.2308/tar-7100520
- Volume
- 37
- Issue
- 4
- Pages
- 774-784
- Language
- en
- Sources
- openalex crossref