[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for BEC. 🙂

[pinkzyy]

Which of the following events would decrease the internal rate of return of a proposed asset purchase?

A.
Decrease tax credits on the asset

B.
Decrease related working capital requirements

C.
Shorten the payback period

D.
Use accelerated instead of straight-line depreciation

The correct answer is A.

Does anyone know about the “C. Shorten the payback period”? What I think is reduced payback period should increase the PV factor, because if you want to reduce payback period, you need to increase future cash flow, so the PV factor should increase. But the answer explains “A reduced payback period correlates to a decrease in the PV factor. I don't understand…..

Thank you.

[emackCPA]

The “payback period” does not use PV factors. The payback period only uses PV factors when it says “discounted payback period”. The language is everything on the CPA exam.

[yehia]

That Q 147 is confusing me , he is assuming that ( The demand for money varies inversely with the rate of interest. The liquidity preference (LP) function relates money demand to the rate of interest. As interest rates fall, the quantity of money demanded increases. As rates rise, the quantity of money demanded decreases. )

As per my study is the Higher interest rate is increasing the demand on the currency and so the value of currency goes up ( but here the answer is referring to the completely inverse picture!!!)

[lauren.wilson14]

Has anyone studying with Becker noticed that some of the questions are not aligning with the chapter? I am doing B6M3 right now and I get questions that are nowhere to be found in the chapter. I click the “see lecture” tab and ends of up being no help. I have a list going now of all questions like this. I am not sure if this is just how they do BEC or what.

[Holly]

@lauren.wilson14 I have noticed that happening

BEC - 79
REG - 85
AUD - 5/27/16

[SamSam]

hello guys
please help any one tried the new BEC exam??
how was the simulations ?
how was the Written communications ?

[SamSam]

how was your experience with the new exam bruh?

[SamSam]

@rosy0407
when is your exam for BEC

[SamSam]

@loraine41
How was your exam on 24 apr?
Was it hard?
How are the Mcqs and Sims ?
Written communication was easy ?

[JJ2992]

Have any of you found the PLUS videos helpful?? They're long and I'm not sure if I should spend my time on it.

[Anonymous]

Which of the following methods may the Federal Reserve use to reduce inflationary pressures?

A. Decrease reserve requirements.
B. Increase margin requirements.
C. Increase the money supply.
D. Decrease the target interest rate.

I choose B and was wrong but the explanation is not making sense to me. Can someone explain, please?

[yehia]

Its easy Ashely
Think in it by that way Money supply is controlled by Fed bank by 3 ways
1- Selling or Buying securities from market
2 Increasing or Decreasing Dis. Rate ( Rate charged on Comm. Banks)
3- Increasing or Decreasing Required Reserve rate (RRR)
So in that MCQ her ask about procedures to stop inflation , Thus mean the Fed bank want to decrease the amount of money available in market so he want to Decrease money supply , to do so he should do one of the 3 option Sell Sec in market to take money in market from people hold money OR Force commercial banks to keep High RRR OR Charge Commercial banks with high Disc. rate

I hope you find that useful , When u gona set your exam??

[aishwaryaganesh186]

Hi All,

Retaking BEC in June. Still waiting for the NTS. Scored 73 the first time. Hopefully 6 weeks is enough time to prepare and pass this time!

Any suggestions?

Thanks!

[fblessed777]

@aishwaryaganesh186, If you manage your time and use it effectively, I guess it is enough. Mine was 5 weeks with 4-5 study hours a day. I encourage you to put your maximum effort on more challenging topics to use your time wisely.

Hope that helps you.

[Anonymous]

I'm not sure when I'm going to set the exam I tried BEC in Jan and really blew it. I'm nervous to take it again. 🙁

[Author]

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