Question

1. What are characteristics of the new view of accounting in 1970s?

2. In what way did the context or the times influence the early years of the CAP?

3. What role did World War I play in the development of public investing in the United States?

4. What motivated the New York Stock Exchange to seek the development of accounting principles?

5. What was significant about the list of five accounting principles that the AIA Special Committee on Cooperation With Stock Exchanges provided to the New York Stock Exchange?

6. What was so important about the creation of the SEC in 1934?

7. Why did the CAP decide not to attempt to formulate an accounting theory? How did this decision affect the CAP over its tenure?

8. What were the forces noted by Zeff (1984) which are responsible for the termination of CAP by the late 1950s?

9. What concerns were raised about ARS #1 and #3? Attribute the concerns to the three stakeholder groups: public accountants, users, and financial statement preparers.

10. How did the principles of ARS #3 change historical cost and the realization principle? Were these changes more in line with GAAP today?

11. What issue caused a major problem for the APB early in its tenure? What aspect of that issue was most troublesome?

12. How strong was the AICPA support for the APB in 1964? What alternative ways could the AICPA have more strongly supported the APB?

13. In what ways was the definition of accounting in ASOBAT a departure from contemporary accounting thinking in the mid-1960s?

14. Summarize Morrison’s, Sorter’s and Sterling’s concerns about ASOBAT.

15. By 1970, what two major problems faced the APB? How were these two problems linked? How did the AICPA attempt to solve the problems?

16. Compare and contrast the Trueblood Committee and Wheat Committee in terms of their purpose, their success in achieving their goal, and their importance to accounting

Answer 1

ANSWER 1-Bookkeeping has changed drastically throughout the long term. From the principal IBM PCs to the AI-controlled devices of the current day, the universe of bookkeeping has changed inseparably with mechanical change. Thus, as Accountancy Age commends its 50th commemoration, we thought we'd take a whistle-stop visit through the business achievements in the course of recent years.

1970s – Early computers

The 1970s weren't completely erupted pants and the splendid tones, they were molded by political and monetary choppiness, characterized by functions, for example, the Watergate Scandal in the States and the Three-Day Week in the UK. Be that as it may, the years weren't all pessimism, particularly for bookkeepers, who started to receive the benefits of the primary mass-delivered microcomputers. 1978 saw the appearance of VisiCalc, another way to say "noticeable mini-computer", the principal spreadsheet programming. The Apple II PC's "executioner application", VisiCalc reformed money related displaying and sold more than 700,000 duplicates in six years.

Characteristics of the new view of accounting in 1970's

In the last part of the 1970s, we saw significant developments in electronic hardware for bookkeepers. Texas Instruments presented the TI-58 and TI-59, permitting us to program estimations on a hand-held number cruncher. The TI-58 sold for $100; the TI-59 sold for $200. I was gooney enough to leave behind the $100 for the TI-58. At about a similar time showed up Tandy's Z-80 PC, highlighting a RAM of 4k for the ~$800 model, and 12k for the ~$1,200 model, using a little casette recorder for putting away composed projects and information. Obviously, you needed to compose programs in Basic to have the PC cycle anything by any means. Harking back to the 1970s, a considerable lot of us were needed to take classes in Basic, Fortran, and COBOL fully expecting the rise of PC handling in the independent company climate. Obviously, that was an exercise in futility and cash.

As a time of political disturbance, it likewise denoted the start of essential change in the bookkeeping calling. The 1970s bookkeeper was somewhat similar to the statistician of today. It was a calling unused to public examination, certain about its own convictions and practices, which had step by step floated distant from a changing public temperament.

Following a progression of setbacks, it found that the public's impression of the calling and what it ought to do, was far eliminated from the picture it had of itself and what it thought its motivation was.

Like statisticians today, bookkeepers were called to the Treasury and advised explicitly to get it together. Their battle to start the cycle of progress was the characterizing issue of my period as manager. However, while that was the manner in which the tide was streaming, it was frequently difficult to see due to the gusts, of which the greatest was expansion bookkeeping.