[jeff]

I have a question that I hope you can help me with…. I purchased the Becker CD’s and installed them on my PC. I have taken and passed all but one of the exams (BEC left).. I was checking to see if my software was up to date and noticed an expiration date of November 2013.. Does this mean my software ( downloaded from my CD’s) will no longer work after November….or will it no longer be supported but I can still take practice exams and do study questions etc?

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

[barelystayingsane]

I've seen some questions about variances on here. For those of you like me who did not understand the PURE SAD DADS mnemonic, below is a video I made for another Another71'er, showing how I learned variances in my cost accounting class in college. Hopefully, it's helpful! It can be used for any variance…the variance I'm showing in the video is VOH. It is somewhat similar to Becker's tabular format, although I've broken it into three inputs, which I find to be much more helpful. Not sure if this is the same way as other prep materials teach it, but I found this table more helpful than the ways Becker explained it. After working through a bunch of problems using the table, I am now able to visualize the table in my head and do variance problems much, much faster. Also, I apologize for my poor attempt at a YouTube video haha

https://www.youtube.com/watch?v=zt2X6OOXBdc&feature=player_embedded

[Amay]

Does anyone have an easy/logical way to remember this? I did not study (nor do I think it is necessary) how to calculate the actual PV factors.

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

a. Decrease related working capital requirements.

b. Shorten the payback period.

c. Use accelerated, instead of straight-line depreciation.

d. Decrease tax credits on the asset.

A: D decrease tax credits on asset

Rule: The internal rate of return is computed as follows:

Investment / Cash Flows = Present Value Factor

The higher the present value factor, the lower the computed rate (internal rate of return). Increases to the investment or decreases to the cash flows serve to increase the present value factor.

I answered A incorrectly because all I knew was that IRR = net incremental invest. or required inv. / net annual CFs so I figured a decrease in WC requirements means you have less cash outflows which increases your denominator (net CFS) and therefore increases IRR.

Maybe it is late but I am not getting this. I might just have to resort to memorizing this one!

Any help is appreciated 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Does anyone have an easy/logical way to remember this? I did not study (nor do I think it is necessary) how to calculate the actual PV factors.

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

a. Decrease related working capital requirements.

b. Shorten the payback period.

c. Use accelerated, instead of straight-line depreciation.

d. Decrease tax credits on the asset.

A: D decrease tax credits on asset

Rule: The internal rate of return is computed as follows:

Investment / Cash Flows = Present Value Factor

The higher the present value factor, the lower the computed rate (internal rate of return). Increases to the investment or decreases to the cash flows serve to increase the present value factor.

I answered A incorrectly because all I knew was that IRR = net incremental invest. or required inv. / net annual CFs so I figured a decrease in WC requirements means you have less cash outflows which increases your denominator (net CFS) and therefore increases IRR.

Maybe it is late but I am not getting this. I might just have to resort to memorizing this one!

Any help is appreciated 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[barelystayingsane]

You may have just read the question wrong. It's asking for a decrease in IRR, not an increase. What you said is right, but that would result in an increase.

A decrease in tax credits means that you will have to pay more in taxes. Having to pay higher taxes decreases your cash flow, which increases your PV factor, which decreases your IRR.

[barelystayingsane]

You may have just read the question wrong. It's asking for a decrease in IRR, not an increase. What you said is right, but that would result in an increase.

A decrease in tax credits means that you will have to pay more in taxes. Having to pay higher taxes decreases your cash flow, which increases your PV factor, which decreases your IRR.

[Amay]

WOW it is definitely time for a break because just went over what I wrote and everything makes sense until I say that an increase in the denominator increases IRR…wow….thanks for pointing it out…crisis averted 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

WOW it is definitely time for a break because just went over what I wrote and everything makes sense until I say that an increase in the denominator increases IRR…wow….thanks for pointing it out…crisis averted 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[ZSRizvi]

For anyone who has Becker, when you're going over the homework problems, if you look in the upper left hand corner under where it says “Question ___ out of ____” it tends to say things like “AICPA released” or “Released in 2005,” etc.

What about those that say “CF #783 (Adapted)” or something like “1B.C02 – 21”? What does that mean?

Is there a list somewhere that tells what that means?

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[ZSRizvi]

For anyone who has Becker, when you're going over the homework problems, if you look in the upper left hand corner under where it says “Question ___ out of ____” it tends to say things like “AICPA released” or “Released in 2005,” etc.

What about those that say “CF #783 (Adapted)” or something like “1B.C02 – 21”? What does that mean?

Is there a list somewhere that tells what that means?

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[ROACH]

@bluegirl, I'll try the PURE DADS. The whole last section is just one big blur to me.. I'm starting to understand variable/absorption just from reading this thread and taking time to absorb the info. Thanks

BEC: 66 | 69 | 7/23/2013
AUD: 8/28/2013
REG:
FAR:

[ROACH]

@bluegirl, I'll try the PURE DADS. The whole last section is just one big blur to me.. I'm starting to understand variable/absorption just from reading this thread and taking time to absorb the info. Thanks

BEC: 66 | 69 | 7/23/2013
AUD: 8/28/2013
REG:
FAR:

[OkieGasAcct]

@bluegirl- I write RTMFQ on my scratch paper too! I wonder if the Prometric employees have caught on to the meaning… haha.

BEC: 7/15/13 - Passed! 83
AUD: 5/20/13 - Passed! 84
REG: 2/25/13 - 68, 4/8/13- 74 - You have got to be joking. Retake: 8/31/13
FAR: 11/29/12 - Passed! 82

Pregnant and studying- due with my first (baby boy) in November.

[OkieGasAcct]

@bluegirl- I write RTMFQ on my scratch paper too! I wonder if the Prometric employees have caught on to the meaning… haha.

BEC: 7/15/13 - Passed! 83
AUD: 5/20/13 - Passed! 84
REG: 2/25/13 - 68, 4/8/13- 74 - You have got to be joking. Retake: 8/31/13
FAR: 11/29/12 - Passed! 82

Pregnant and studying- due with my first (baby boy) in November.

[OkieGasAcct]

Does anyone know how factoring receivables affects your receivables ratios? I mean, does factoring your receivable mean that you get to count them as collected?

I had a question in Wiley Test Bank about how to shorten your receivables collection period and two of the answers involved factoring. I just hadn't considered the effect and it isn't covered in Roger (that I can find). It was a practice test so I didn't find out what the right answer was.

BEC: 7/15/13 - Passed! 83
AUD: 5/20/13 - Passed! 84
REG: 2/25/13 - 68, 4/8/13- 74 - You have got to be joking. Retake: 8/31/13
FAR: 11/29/12 - Passed! 82

Pregnant and studying- due with my first (baby boy) in November.

[OkieGasAcct]

Does anyone know how factoring receivables affects your receivables ratios? I mean, does factoring your receivable mean that you get to count them as collected?

I had a question in Wiley Test Bank about how to shorten your receivables collection period and two of the answers involved factoring. I just hadn't considered the effect and it isn't covered in Roger (that I can find). It was a practice test so I didn't find out what the right answer was.

BEC: 7/15/13 - Passed! 83
AUD: 5/20/13 - Passed! 84
REG: 2/25/13 - 68, 4/8/13- 74 - You have got to be joking. Retake: 8/31/13
FAR: 11/29/12 - Passed! 82

Pregnant and studying- due with my first (baby boy) in November.

[Author]

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