PROFESSIONAL EXAMINATIONS.
The article presents problems from the first half of the Certified Public Accountants Examination in accounting theory and practice, presented on May 16th and 17th 1939 in those states using the questions prepared by the Board of Examiners of the American Institute of Accountants. Candidates were required to solve all problems. From a comparative summary and additional information given, a statement of application of funds was asked to be prepared. The Sulphur Company, organized January 1, 1934, was formed to mine, refine, and sell sulphur. To that end it secured a twenty-year lease on 500 acres of known sulphur deposits, referred to as section A, and 500 acres, referred to as section B, of potential but undiscovered sulphur deposits. It was estimated after engineers' survey that there were 5,000,000 tons of sulphur under section A at the time of acquisition. Mine reports showed the number of tons taken out by years. A statement was prepared by the company's bookkeeper. The statement is correct and all accounting requirements have been met, except that the company has never provided for amortization or depletion since, in the words of the company's president, "it had discovered from prospecting more new deposits than it had mined."
- DOI
- 10.2308/tar-7062689
- Volume
- 14 (4)
- Pages
- 437-451
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref