TRAP FOR YOUNG STUDENTS

Press, Volume C, Issue 29674, 18 November 1961, Page 12

TRAP FOR YOUNG STUDENTS

(N.Z. Press Association) AUCKLAND, Nov. 17. Accountancy students have been puzzled by a question that appeared in the accountancy stage 1 examination paper this week. And so are practising public accountants with many years experience The question says:— “You are required to state what you understand by the continuity of activity convention and what import conclusion are drawn from it." A leading Auckland public accountant put the question to seven of his colleagues. "All I got on the ‘phone was a long pause." he said. "They had never heard of it" It sounded tike a typical university question, he said. It was “probably some academic matter which I couldn’t even guess at. But if eight practising public accountants cannot answer it it doesn't seem to be a vary

material fact from a student's point of view.” The professor of accountancy at Auckland University (Professor L. W. Holt) Mid tonight that he took the “continuity of activity convention” to be another way of saying "going concern convention" which was one of the aspects of accountancy He had not heard it described that way before, but thought that the person who set the paper for the University of New Zeeland had picked it up from “something he had been reading.”