BEC Study Group – Q1 2018 - Page 18

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  • February 19, 2018 at 9:55 pm #1716520
    HT415
    Participant

    @J king thank you!

    I have BEC tomorrow morning and have been nearing a 70% trending score… I feel confident because I know the questions on the actual exam are usually more straightforward, but at the same time I don't feel 100% comfortable yet. I think once I sit down and take the exam I'll settle in.

    People who have taken the exam and have used ninja mcq, how would you rate the comparability of ninja mcq to the exam, particularly in the IT section? It feels like the ninja mcq just nails the type of IT content that comes up on BEC (I've taken it twice), but didn't use ninja extensively enough until now.

    February 20, 2018 at 9:38 am #1716682
    PJ
    Participant

    Anyone here an IL candidate? How long will we have to wait for BEC scores after the official release date?

    February 20, 2018 at 6:44 pm #1717034
    PJ
    Participant

    @ReckedRacing

    A couple weeks ago you posted about the ratio SIM from the AICPA sample exam and the operating cash flow ratio. Can you tell me how you got the correct answer? They have 0.39 as the correct ratio and I can't figure out how they got that.

    Cash flow from operations / ending current liabilities is the formula given. Like you, I assumed it was the income from operations + the depreciation which gave something like 1.37 as the answer. To get 0.39, using the ending current liabilities of $5,230,000, the operating cash flow would have to be $2,039,700. I'm not sure how to calculate this answer.

    Were you able to figure it out?

    February 20, 2018 at 7:37 pm #1717049
    rencpa
    Participant

    @PJ

    Not sure where you got 0.39 from. Just checked the AICPA sample test again and the answer for OCF Ratio is posted as 1.44.

    OCF Ratio = OCF / CL

    Both of the numbers were provided:
    — OCF = $7,550.000 (give in the beginning paragraph, “The company has been profitable & generated $7,550,000 in cas from operations in year 5”)
    — CL = $5,230,000 (also given on the BS for year 5)

    Plug the numbers and here you go. You answer should be 1.44 (as per the AICPA website)

    Please check this out again.

    February 20, 2018 at 8:12 pm #1717076
    PJ
    Participant

    I'm using the 2018 version which apparently has different numbers. However, I did figure out why it's 0.39. Like you said, they give you the cash flow from operations right in the paragraph and I skipped over it. The number given in the 2018 version is $2,050,000. Divided into ending current liabilities of $5,230,000 gives 0.39.

    February 22, 2018 at 8:13 pm #1718290
    Bourne
    Participant

    When calculating PV and FV, how do you know whether to use the WACC or the borrowing cost?

    February 23, 2018 at 8:32 am #1718440
    Bourne
    Participant

    Also, how were the ninja MCQ's compared to the exam for BEC? I'm noticing quite a few topics that were not covered in Wiley that are on the Ninja MCQ's

    February 23, 2018 at 12:34 pm #1718552
    PJ
    Participant

    I'm not sure what you mean in your first question, Bourne. What would WACC have to do with calculating PV?

    If you are asking about calculating the PV of future cash flows, it will give you the factor to use.

    February 23, 2018 at 12:39 pm #1718564
    PJ
    Participant

    Took BEC yesterday. Like a lot of other people, was pretty shocked at the number of IT and COSO questions. Don't blow off studying for COSO.

    Was also shocked at how few cost accounting questions were included among the MCQ. I must have done ok on the first MCQ testlet because even though it was hard, the second testlet was brutally difficult. I think I did well on the SIMs and WC so I am hopeful I passed.

    February 23, 2018 at 1:06 pm #1718579
    Recked
    Participant

    @Bourne
    From what I remember the WACC is usually used as the hurdle rate.
    If they only provide the borrowing rate I would use that as the hurdle rate, otherwise I would use WACC, but I could be wrong.

    February 23, 2018 at 1:11 pm #1718581
    Bourne
    Participant

    In Wiley there was a sim that provided the WACC and the borrowers rate for computing PV and FV of expected cash flows. Two of the answers you use the borrowers rate and two of the answers you used the WACC, but it did not explain why you use one over the other.

    I understand the basics, just not why they used one over the other.

    February 23, 2018 at 2:17 pm #1718618
    Brian
    Participant

    @slowreader

    I think there's a legit mistake in that Wiley budget question. Reason is- they give you fixed budget amounts for OH and SGA, but then by month, and for the whole quarter in total, the “Static Budget” numbers magically change this. There's no apparent correlation either between the allocated variable costs, not that there should be, but I had wondered if that was driving the problem as well. For sake of practicing, it's best to just change the given info to what the answer says. I agree with all that say it's absurd there's no explanation but whatever.

    @Bourne

    I have the same question. The only thing I can think of is that it has something to do with the nature of the activity, though I struggle to find a rationale for half being one way vs the other. Capital lease accounting?

    PS How the heck do you tag people, this is my second post and the “@” function doesn't seem to automatically work

    February 23, 2018 at 2:42 pm #1718645
    Recked
    Participant

    tagging people doesn't really make any difference, as you don't get notifications if you are tagged in a post.
    some people's display names do not coincide with their usernames behind the scenes, so the @ tag function does not correlate display name to username

    the above discussion on WACC vs borrowing rate has me a touch nervous for score release, lol – fingers crossed

    February 23, 2018 at 2:52 pm #1718656
    jenpen
    Participant

    @Bourne – I used Wiley & Ninja to study and that was what finally helped me pass BEC. If you're using both, you'll be fine. I think Wiley has more COSO and IT than Ninja, but I liked Ninja overall for the rest of it. Ninja's test bank really helped me on the calculations and formulas.

    AUD - 56 - 68 - 61 - 9/8/16
    REG - 75
    FAR - 7/15/16
    BEC - TBD

    Wiley CPAexcel and NINJA 10 Point Combo

    February 23, 2018 at 9:09 pm #1718746
    Tbugg
    Participant

    For those of you using Gleim, have you noticed the sims being extremely long and over complicated? I end up leaving most of them blank because I can't figure them out and run out of time. The answer explanations end up being pages long. Are they this bad on the test?

    Thanks for your help!

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