The Accounting Review Vol. 42 No. 2 1967
CPA Examination: Theory of Accounts.
Abstract
This article focuses on the theory of account and the principal deficiencies in this financial statement. These deficiencies are the basis of valuation of the marketable securities should be disclosed. If carried and reported at cost, the market value of such securities should be disclosed if significantly different from cost. The current value of such securities represents the approximate amount of cash obtainable from sale of the securities. The type of marketable securities against which the tax liability is offset is not disclosed. Because U.S. treasury bills may be used to pay income taxes owed to the U.S. government, it is considered acceptable to offset such bills against the income tax liability. The offsetting of other types of U.S. government securities against a tax liability has little theoretical justification although such a presentation may not require an exception. Finally, more adequate disclosure of the offsetting of U.S. treasury bills would be obtained by stating the full amount of accrued taxes payable less the taxpaying value of the securities in the current liability section of the balance sheet.
- DOI
- 10.2308/tar-4500001
- Volume
- 42
- Issue
- 2
- Pages
- 396-410
- Language
- en
- Sources
- openalex crossref