[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

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

[Anonymous]

Really need a power weekend this weekend!!! Goal is to get my videos done by tomorrow. Then on to MCQ…..

[Anonymous]

@Cracked B3 is just as bad, at first. But then 4-6 are very easy to get through so it will even out. You can do B5 in one or two days.

[mjp44]

Chap 1-3 definitely take the longest. 4-6 go much quicker.

Finishing up ch 6 tonight! Gonna start my final review this weekend. Taking the test May 12…goodbye to the next 3 weekends 🙁

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[MrsBing]

Finishing up chapter 2. This chapter took me 2 weeks to complete, so now I'm a week behind. I'm going to skip chapter 3 and save for last so I can get a break from memorizing these formulas. Hopefully I can push through 4-6 in 2 weeks, then go to chapter 3, leaving me 2 weeks for review. I really hate these formulas 🙁

Becker, Wiley Test Bank, and Ninja 10 Point Combo!

FAR: 89
REG: 87
AUD: 92
BEC: 75
Ethics: 90

Licensed Arizona CPA

[MassCPA2014]

Less than a week til test day. This COULD be the last one, which is pretty much the only thing keeping me motivated at this point. Better to grasp the material completely and be less familiar with MCQ, or be more familiar with the ins and outs of the MCQs and spend less time thoroughly reviewing the material, if you had to choose one?

FAR: 86
AUD: 88
REG: 85
BEC: 84
DONE!

[Quinacridone]

MassCPA2014,

I take my test May 6 and it is potentially my last one (waiting for score on audit from earlier this month). I purchased the NINJA MCQs last night for my final review and am loving it. Its helping me find some of my holes in understanding and I like that it is asking questions from different angles. $47 seemed more than fair.

I plan on doing MCQs nonstop at night and in the mornings before work (and all weekend) and then reading the book at lunchtime. Please let this one happen!

Mrs.Bing and mjp44, I only did partial sections in chapters 2 and 3 so that I could push through to the other chapters. Then I would do about 10 MCQs each night from 2 and 3 to slowly finish. Doing it this way got me quickly through all the videos, but also kept those earlier chapters fresh.

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[IWPGirl]

@ cracked: The first three chapters took a while. I kept a notepad at work where I re-wrote formulas throughout the day. Re-writing definitely helped me to memorize. Hope this helps. Now to the IT stuff which sounds very foreign…

AUD - 90
REG - 78
BEC - 84
FAR - 91 woo hoooo!!

Becker and Ninja MCQ

[mjp44]

Lynn Dissinger has been hired as the investment strategy manager at her company and is identifying the various types of risk the company is facing in its investment activity. Which of the following statements about investment risk is FALSE?

A Liquidity risk refers to the company's exposure to loss resulting from the lack of liquidity or marketability of an investment.

B Credit risk is also known as default risk and exposes the company to loss when purchasing debt securities of other firms.

C The company's exposure to loss on its investments resulting from changes in the rate of inflation is referred to as price risk.

D Exposure to loss due to investment price risk can be mitigated through use of hedging and diversification techniques applied by the company.

Answer is C but isnt B also a false statement? Credit risk is not the same as default risk right? From my notes, credit risk is the ability of a firm to obtain a loan and default risk is the risk that a borrower defaults.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[Anonymous]

Credit risk is the risk of customers defauling on their credit purchases

[jlondon]

How heavy is BEC testing on Derivatives and Hedging, and capital budgeting area? I am having a really hard time here, and thinking about skipping it.

BEC: 69, 57, 72, 73, (anticipated for 4/4/2015)
AUD: 65, 63, 74, 84!!! (expires 7/31/2015)
FAR: 63, 57, (scheduled for 4/1/2015)
REG: ... 42, (Anticipated to be around 5/20~)

-Every Set Back is a Set Up for a Major Come Back #motivation

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed." - Michael Jordan

"You are not your past, but the resources and capabilities you glean from it" -Jordan Belfort

[Quinacridone]

Hedging is kicking my tail. .

I've made myself a little “chart” to help with some of the foreign currency problems, but not all:

Fx US$ A/R A/P

D A L G

A D G L

(Fx = foreign currency, US$ = Domestic Currency)

(D = Devalues; A = Appreciates)

(L = Loss; G = Gain)

So if a Foreign Currency devalues, the US$ appreciates against that currency (sorry, the chart above is all skewed but all of the letters (DALG) are supposed to line up under their headers). That means if we have to pay in a foreign currency, then we have a gain. When the question starts throwing in demand for products or hedging, then I get lost.

Does any one have a good grasp on foreign currency to help with the demand part or the hedging? I'm going to work on it today to see if I can get it to make any better sense.

I'm just about out of time: 9 days and counting.

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[mjp44]

@Quin…i just write it out and think about it. if you know how put/call options work..this is not too bad.

For inflows (A/R):

If Foreign currency depreciates – Net inflows(A/R) decrease = Loss

If Foreign currency appreciates – Net inflows(A/R) Increase = Gain

To hedge against loss with your A/R you would buy futures contract/or put option. This would give you the right to sell the currency at a given amount. If in fact the currency did devalue, you would exercise the option and sell currency at the higher value – the strike price. This would eliminate the loss incurred with the value of your A/R decreasing.

Likewise for outflows (A/P)

If Foreign currency depreciates – Net outflows(A/P) decrease = Gain

If Foreign currency appreciates – Net outflows(A/P) Increase = Loss

To hedge against the possibility of foreign currency increasing in value and thus your A/P increasing in value, you would by a futures or call option to buy the currency at a specified amount. If in fact the currency does go up in value, you are hedged because you have an option to purchase the currency at a specified amount. Therefore the loss incurred with value of currency going up is eliminated because of the option.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[mjp44]

@Quin…i just write it out and think about it. if you know how put/call options work..this is not too bad.

For inflows (A/R):

If Foreign currency depreciates – Net inflows(A/R) decrease = Loss

If Foreign currency appreciates – Net inflows(A/R) Increase = Gain

To hedge against loss with your A/R you would buy futures contract/or put option. This would give you the right to sell the currency at a given amount. If in fact the currency did devalue, you would exercise the option and sell currency at the higher value – the strike price. This would eliminate the loss incurred with the value of your A/R decreasing.

Likewise for outflows (A/P)

If Foreign currency depreciates – Net outflows(A/P) decrease = Gain

If Foreign currency appreciates – Net outflows(A/P) Increase = Loss

To hedge against the possibility of foreign currency increasing in value and thus your A/P increasing in value, you would by a futures or call option to buy the currency at a specified amount. If in fact the currency does go up in value, you are hedged because you have an option to purchase the currency at a specified amount. Therefore the loss incurred with value of currency going up is eliminated because of the option.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[mjp44]

@Quin…i just write it out and think about it. if you know how put/call options work..this is not too bad.

For inflows (A/R):

If Foreign currency depreciates – Net inflows(A/R) decrease = Loss

If Foreign currency appreciates – Net inflows(A/R) Increase = Gain

To hedge against loss with your A/R you would buy futures contract/or put option. This would give you the right to sell the currency at a given amount. If in fact the currency did devalue, you would exercise the option and sell currency at the higher value – the strike price. This would eliminate the loss incurred with the value of your A/R decreasing.

Likewise for outflows (A/P)

If Foreign currency depreciates – Net outflows(A/P) decrease = Gain

If Foreign currency appreciates – Net outflows(A/P) Increase = Loss

To hedge against the possibility of foreign currency increasing in value and thus your A/P increasing in value, you would by a futures or call option to buy the currency at a specified amount. If in fact the currency does go up in value, you are hedged because you have an option to purchase the currency at a specified amount. Therefore the loss incurred with value of currency going up is eliminated because of the option.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[Quinacridone]

Thank you mjp44. I've copied down your post and am going to apply it to the MCQs I work through today. Hopefully by tonight I'll have foreign currencies down.

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[Author]

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