Abstract During recent years a problem involving the statement of affairs has appeared on the uniform CPA examination approximately once every three years. The customary approach and final form of the statement are such that they require memory rather than logic for satisfactory performance. Most textbooks in advanced accounting present a problem and a final statement of affairs, but do not furnish a path by which one can venture from one to arrive at the other. The statement has no natural flow. The disorganization present in the statement is emphasized by the constant cross referencing necessary to give it even a semblance of cohesion. The approach explained in the article has proved extremely beneficial. Once mastered, it will cut in half the time necessary to reach completion. There is a logical procedure by which one goes from one step to the next. The statement of affairs is presented in columnar form in two parts, one for the asset accounts, the other for the liability and ownership equity accounts, similar in form to the presentation of the account form of the balance sheet.
J. A. Leer (Thu,) studied this question.