[Smile1981]

Hello,

How is everyone doing? I am hanging in there…..

I am currently using Wiley for BEC and wiley has lot of numerical problems with lots of calculations.They are so complex and involve so many steps to arrive at the right answer I just forget the steps in between. Can you advice how to practice these problems and what should I do to remember the steps? I am trying to understand the formula rather then just memorize it…. and it works that way well for me but if the questions are worded even little bit different I just lose my confidence. Please help.

[rknight21]

i am currently studying foe BEc and i just try to understand the concept and memorize the formulas…. so far i am only having issues memorizing the peg ratio, some of the leverage ones but everything else isnt too hard…. for the FIFO and weighted Equivalent units one i just picture it laid out..just practice practice practice and they should stick is all i can say

[Anonymous]

The best thing to do is have the formulas written down next to one another. Most of the questions they have where the formulas are different and more complex have to do with BE point. If you have all of the formulas for BE pt. next to one another it is extremely easy to see what they are looking for once you plug stuff in. For instance you may need to solve for Total Fixed Costs. However, the formula containing the variable Total Fix Cost may give you the total profit before tax, BE Pt, but not contribution margin. So you have to take the given variables to another formula and find the CM per unit or CM Ratio. You can visualize this so much better when the formulas are lined up next to one another.

It is very important to line up what is given and finding out what you are solving for. Once you do that then take a look at the formulas, you then may realize that you may need to find out one more variable through the use of a different equation. It really throws people, but it is all about using the equations and thinking it through. Just keep practicing and don't let it numb your mind when you realize there is something missing. When I first realized this it took me forever to work the problems and find out what was missing. However, it takes a ton of practice to make it happen. You will be fine just practice and fine tune. You will improve as you go along.

[nickc1028]

I seem to be having problems starting threads so I'm very sorry and I do not mean to hijack the thread!

Does anyone think that it would be beneficial to skip all the Becker cost accounting (100 something questions of calculations) and come back to them during final review and just continue to learn new material?

CPA
AUD - 7/26/11 - pass
BEC - 8/31/11 - pass
FAR - 10/14/11 - pass
REG - 11/26/11 - pass
CMA
2/27/15 - pass
5/9/15 - pass

[Anonymous]

Nickc1028…

I skipped them and am doing them now, a week before the exam. Problem is I skipped 50-100Qs in B3 and a solid 150Qs in B5. They all add up when you procrastinate.

Good luck.

[Smile1981]

These questions are from Wiley CPA Review (BEC 2011) from Module 46 on Performance Measures. The answers are provided at the end of the chapter but I am not 100 % convinced the answers are correct because the reasons why they say the answer is right is not right :)…..?

well here goes the questions :

1. The collection of a current accounts receivable of $ 29,000 would

a. Increase the current ratio

b. Decrease the current ratio and the quick ratio

c. Increase the quick ratio

d. Not affect the quick ratio or the current ratio

2. Obsolete inventory of $125,000 was written off during the year. The transaction

a. Decreased the quick ratio

b. Increased the quick ratio

c. Increased the net working capital

d. Decreased the current ratio

3. At which phase in the business process management life cycle does management simulate performance of the process in a test environment?

a. Design

b. Modeling

c. Execution

d. Optimization

[iPass]

@Smile1981:

To answer questions 1&2 you need to take a look at the following ratios:

1. Current Ratio = CA/CL

2. Quick (Acid test) Ratio = (Cash + Marketable securities + Net A/R) / CL

3. Working Capital = Current Assets (CA) – Current Liabilities (CL)

So, if A/R were collected, current assets will not be affected (A/R will decrease but Cash will increase), therefore no affect on Current Ratio.

Same with quick assets: as A/R decrease, Cash will increase by the same amount, thus no affect on Quick Assets (Cash + Marketable securities + Net A/R) and no affect on Quick ratio.

In this case, for question 1 the answer must be “D” : Not affect the quick ratio or the current ratio.

Question 2:

Inventory is not a part of quick assets (only Cash + Marketable securities + Net A/R). When obsolete inventory is written off, we didn’t sell the inventory therefore there will be no change in cash or net A/R – we can eliminate answers “A” and “B”.

By writing off the inventory we decrease our current assets and net working capital in fact will decrease, not increase (see the formula above).

The only ratio that will be affected by the change in inventory balance is our current ratio. Current assets will decrease and as a result current ratio will decrease. “D” should be the answer.

Hope this makes sense.

BEC - 10/12/2011 - 78
AUD - 11/23/2011 - 84
FAR - 02/22/2012 - 76 (I'll take it!)
REG - 08/31/2012

“Win as if you were used to it, lose as if you enjoyed it for a change.”
-Ralph Waldo Emerson

[valueofnothing]

fresh out the test – and the 2nd and 3rd testlets (which i think/hope were “hard”) featured a ton of obscure calculations. not to get anyone worried… just saying, practice will be worth it

REG - 81
BEC - 88
AUD - 85
FAR - 81

[Smile1981]

@ iPass thanks a lot for the explanation. I really don't think Wiley has done good job on chapter of Performance Measures.

Most ratios are weirdly explained. Maybe I should look at my college text by Pearson.

[iPass]

@valueofnothing thanks for sharing! hopefully you got it!

@smile: no problem! I'm glad I was able to help. When is your exam date?

BEC - 10/12/2011 - 78
AUD - 11/23/2011 - 84
FAR - 02/22/2012 - 76 (I'll take it!)
REG - 08/31/2012

“Win as if you were used to it, lose as if you enjoyed it for a change.”
-Ralph Waldo Emerson

[Smile1981]

BEC – August 22nd 2011.

[khachik2003]

the wiley calculation problems are a lot harder than what you should see on the exam

however the cost accounting and variance problems are a pain if you dont have the formulas memorized

[Author]

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