PROFESSIONAL EXAMINATIONS.
This article presents several problems prepared by the Board of Examiners of the American Institute of Accountants in the U.S. and were presented as the second half of the Certified Public Accountants examination in accounting practice in May, 1946. The candidates were required to solve both problems. The weights assigned against each problems were specified. The time allowed was four and a half hours. A suggested time schedule was also provided. One of the questions is related to the preparation of a corrected balance-sheet of the Acme Trading Company as at December 31, 1944. Another question is related to taxable net income of Mart Co. Inc. for purposes of the 1945 corporation income tax return in the U.S. Mart Co. Inc. is a dealer in personal property and, for purposes of the U.S. income tax, reports gross profit on sales on the installment basis. Accordingly, gross profit realized and reportable each year is X dollars Worthless accounts are deducted in the year of default, a provision to a reserve for bad debts may not be deducted. With respect to repossessions, a deduction may be taken to the extent of the excess of the unrecovered cost over the salvage value of the repossessed merchandise.
- DOI
- 10.2308/tar-7053267
- Volume
- 21 (4)
- Pages
- 464-470
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref