[jeff]

@h0wdyus

Incorrect

The answer is B. Comparable sales.

“The use of comparable sales is not an income approach to valuation of a business, it is a market approach. Under the comparable sales approach, the value of a business is determined by comparing it to other entities with comparable characteristics for which the value is more readily determinable.”

This was a tricky one

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

I scored the worst on Financial Mgmt out of any other section.

[stoleway]

@amanda…

You've passed this before so im pretty sure you will do well.

@casa…jeez, u were close to 75. How was your score report like?

I read in one of those thread about someone who was stronger on all the Bec topics but weaker on the written portion and still got 74? Is that realistic?

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

I guess that's possible….you would probably have to do pretty bad on the WCs. BEC is the only exam I've failed. Coming so close is rough. For my score report I was stronger in 2, weaker in 2 and comporable in 2. My WC were comporable even though I ran out of time on my last one and only finished half.

[M.O.D.]

Which of the following characteristics represent an advantage of the internal rate of return technique over the accounting rate of return technique in evaluating a project?

I Recognition of the project’s salvage value

II Emphasis on cash flows

III Recognition of the time value of money

A. I and II.

B. I, II, and III.

C. II and III.

D. I only.

Answer (C) is correct.

A project’s internal rate of return is the discount rate that equates the present value of the future cash flows with the initial cost of the investment. The accounting rate of return is calculated by dividing the increase in average annual accounting net income by the required investment. Thus, while both techniques take salvage value into consideration, accounting rate of return ignores cash flows and the time value of money.

Question: how does the accounting rate of return take the salvage value into consideration?

ARR = annual increase in GAAP net income/required investment

The depreciation is less because there is a salvage value?

But salvage value is not subtracted from the required investment.

What is you take on this?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Anonymous]

I don't see how salvage value would be taken into account with any technique that does not use the time value of money…unless as you mentioned..it has an indirect effect on depreciation. Also, as you mentioned, we don't use it in the ARR formula so I wouldn't lose sleep over it. Know the formulas and you'll be fine.

[laikmonster]

I'm taking BEC on the 18th, two weeks from today. I just started studying today because I took FAR yesterday. I'm using Becker and I'm wondering how useful the lectures are for this section. Would I be better off just reading the chapters on my own and doing the homework? The lectures usually seem rather useless. Any advice?

AUD - 5/29/14 - 90
FAR - 7/1/14 - 90
BEC - 7/18/14 - 88
REG - 8/18/14

Becker

[fiona87]

@Laikmonster – I ditched the videos entirely and am just reading the book and taking notes, but I'm using Yaeger. No idea if the Becker lectures are any better. I feel I'm learning the material better this way, frankly, because I'd get VERY unfocused during lectures and let my mind wander. Active notetaking from the book is keeping my interest (ha) better than just listening to someone talk at me.

FAR - 79 (11/27/13)
AUD - 76 (2/1/14)
REG - 77 (5/30/14)
BEC - 88 (7/18/14)

MN Ethics - 100% (3/9/14)

AND DONE! 8/1/14

[M.O.D.]

2 weeks to prepare for BEC? Maybe you are a genius, but that is what I am allowing after I learn the material and am scoring 90%. I allow 2 weeks to practice my speed on the essays and the MCQs, on a combined test.

My schedule:

2-3 months to read the book, take notes, and do all the MCQs and essays you can find.

Take sample test. If scoring 90% or higher, then schedule with prometric for 2-3 weeks ahead.

Redo essays, MCQs and the notes to solidify the material, (and practice speed).

Two days before test: rest, sleep, meditate to defocus the mind, and open yourself to new questions.

Just read and write notes, no MCQs or essays so as to not burn out.

I want to guarantee myself a pass by scoring high. Plus high scores look good in and of themselves 🙂

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Anonymous]

For what's it's worth, I don't think there is any problem skipping the lectures that cover basic conceptual information or simple calculations….BUT….there are some lectures that explain more in depth calculations where I think watching the lectures helps more than the book. Seeing the instructor write out the steps really cements it in your mind. For example, service Dept Cost Allocation. Had I just reviewed the book and not watched the lecture I think it would have been harder to grasp. My instructor used one problem to describe all three methods of service dept cost allocation which made it convenient and really didn't take much time. I understand you are trying to save time but don't discount the lecture too much. Remember, the purpose of the lecture is to simplify things. The book can, at times, be way too much info.

[Anonymous]

@Casagarber All three methods? I thought there were two, the direct method and the step down method, to allocate service dept costs?

[fiona87]

I just finished up doing some tutoring for cost accounting, and it was one of my favorite accounting topics, so I've got a pretty good grasp of those concepts. If I didn't, I'd be watching the lecture for that section – because I agree, there is a LOT of information in the book and it can often be better and more simply explained by a lecture.

Part of my distractibility may just be because I'm running out of steam test-and-studying-wise. Somehow the FAR lectures of last fall seem so engaging compared with BEC. 🙁

FAR - 79 (11/27/13)
AUD - 76 (2/1/14)
REG - 77 (5/30/14)
BEC - 88 (7/18/14)

MN Ethics - 100% (3/9/14)

AND DONE! 8/1/14

[Anonymous]

Bpk1..yes there are three methods. You are missing the reciprocal method. All three are tested on the CPA so make sure you cover it. I also ran out of steam..:hence me taking my first retake ever. Don't lose track of your main goal. You can relax later!

[fiona87]

@casagarber – Yeah, I know. I feel so bad for you, man. Eyes on the prize and all. Still sucks! I shouldn't bitch, though, really. Ugh. Can't wait to have a life again. I know you (and EVERYONE ELSE) are in the same boat.

FAR - 79 (11/27/13)
AUD - 76 (2/1/14)
REG - 77 (5/30/14)
BEC - 88 (7/18/14)

MN Ethics - 100% (3/9/14)

AND DONE! 8/1/14

[Anonymous]

@Casagarber does Becker not cover it? I ask because I cannot find reciprocal method, unless it goes by something else in the BEC book, and I want to make sure I cover it!

ETA: Re-watching bec lecture for b1-60

[Anonymous]

I use Yaeger so maybe someone else using Becker can chime in. Direct method doesn't allocate any costs btw service depts, Step method is a partial allocation of service costs btw depts and Reciprocal is a full allocation of service costs btw depts. Reciprocal method uses algebra and isn't hard but you need to know it…trust me…

[Author]

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