[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

[titoav15]

@scarletknight91, I ment a compilation of random questions, will do first Becker practice exam at the end of the week prob. I definitely want to be in the 80s though!

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[mjp44]

Speaking of Becker final exams..how did you guys do on them if you have taken them? I took the first one yesterday and scored 1. 83% 2. 58% – ouch 3. 75% for an average of a 72%. I know i have a few weak areas that i am trying to brush up on.

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.

[scarletknight91]

mjp44, for the other 3 exams ive taken, i dont think i scored lower than 75s on mc and sims i got mid to low 80s at a minimum. for audit i had 87 and an 84 i think which were my highest compared to far and reg. still waiting for audit, but i scored highly on far and fairly high on reg so hopefully its a good barometer

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[titoav15]

Just scheduled BEC for May 21 guys… boom pressure is on!

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[scarletknight91]

titoav15 where are you with the becker material. im starting b4 tomorrow

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[titoav15]

@scarletknight91, I'm just finished B4 (however I went out of order and B4 was my last section).

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[scarletknight91]

titoav15, gotcha my pace is slower lol

random question here for anyone who can explain this to me because im probably way over thinking this. one answer conclusion had the following written as an explanation:

“The annual savings needed to make the investment realize a 12% yield is where the present value of the cash savings/inflows equals the present value of the net cash outflows.”

why isn't is PVCashInflows = (PVCashOutflows)*1.12 ?

my thought process is that by equating the pv cash flows for both inflows and outflows, arent you simply finding the cash flows that recoup cost, rather than a 12% return? for instance, if you invest 50,000 today, you dont want find out the present value of the cash flows that youll be receiving in the future to earn 50,000. if youre looking for a return of 12%, wouldnt you look for the pv of cash inflows for 56000 (1.12*5000)?

FAR: PASSED
REG: PASSED
AUD: PASSED
BEC: PASSED

DONE

[titoav15]

@scarletknight91, do you mind posting the entire question? 🙂

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[titoav15]

@scarletknight91, this is what I think… 12% yield is the cost of capital. The way NPV works is if the calculation positive, then the investment achieved the hurdle rate (12%) if NPV is 0 then it broke even at 12%. Formula is NPV= disc. inflow – initial outflow. when you look at the discounted inflow it is discounted by the hurdle rate. Does that make sense? hopefully this is what you were asking for 🙂

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[mjp44]

Yes…the way I have it remembered is if NPV > or = 0 then you accept project. The cash inflows are discounted for risk and time value of money using the required rate of return – also known as the hurdle rate %.

You can also make the decision using the IRR which calculate the rate of return that would get the cash inflows to = NPV. You accept project if the IRR calculated is greater than the hurdle rate.

I have a question regarding the hurdle rate. Does it also equal the WACC? or can it be an arbitrary number determined by management?

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.

[titoav15]

@mjp44, yes (for IRR and NPV). For Residual Income – hurdle rate is set by mgmt… For Economic Value Added – hurdle rate is WACC

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[How many letters do you need]

Mjp: Solid summary above. Another way to look at IRR…The IRR is technically the discount rate that would make the NPV 0. So another good way to think of an IRR is the breakeven discount rate for NPV. In the world of NPV you would obviously need a discount rate less than a breakeven in order to be profitable, which is why the IRR has to greater than the hurdle rate to accept the project. Regarding your point on what the hurdle/discount rate can be….It is usually the WACC but management can adjust that depending on the capital budget spend. In other words, if they want or need to be more or less choosey with projects, they can take that into account by adjusting the discount/hurdle rate up or down; although WACC is usually the starting point. The other thing to keep in mind is that in many cases they can use the discount rate to adjust for risk as opposed to the cash flows. So it can vary with risk as well…

MBA,CMA,CPA, CFF?, ABV?

[titoav15]

IT question here… this is probably so minor but I am curious what is the difference between a field check and validity check? To me it sounds like they are accomplishing the same thing.

BEC: 5/21/14 82! PASSED HALF WAY THERE!
FAR: 4/2/15 80! Almost there!
AUD: 69, 74, 4/3/14 81! PASSED
REG: TBD

[mjp44]

@tito..I know that both are edit checks. I have in my notes that validity checks compare ID numbers or transactions numbers to confirm that the item/transaction is in the system. Not too sure what field check is. Ninja says that it checks to make sure that the field is the proper type – alphabetic or numeric..

Another question here: In Ninja notes and other review materials the formula for inventory conversion is average inventory/ COGS per day. You can also compute this by 365/Inventory turnover rate, correct? I believe you get the same answer. The same method goes for A/R conversion – 365/A/R turnover rate.

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.

[NYCaccountant]

Validity check – proper value is entered and correspondes to data within a database – for example, a date of 4/30/2014

Field check – proper characters, so like only numbers or letters, no symbols.

By the way, Good luck on your exam MJP!

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Author]

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