[jeff]

@h0wdyus

Incorrect

The answer is B. Comparable sales.

“The use of comparable sales is not an income approach to valuation of a business, it is a market approach. Under the comparable sales approach, the value of a business is determined by comparing it to other entities with comparable characteristics for which the value is more readily determinable.”

This was a tricky one

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

[h0wdyus]

inventory turnover = Cost of Sales/Avg inventory

8 = 2 mill/Avg Inv

Avg Inv = 250,000

Quick Asset + Inv = Current Asset

Quick Asset / CL = 2

Quick Asset = 2 x CL **

CA/CL =2.5

CA = 2.5 x CL

Quick Asset + Inv = CA

2 x CL ** + 250000 = 2.5 CL

CL = 500,000

CA = 2.5 x 500,000 = 1250,000

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[stoleway]

Image processing systems have the potential to reduce the volume of paper circulated throughout an organization. To reduce the likelihood of users relying on the wrong images, management should ensure that appropriate controls exist to maintain the:

A.

legibility of image data.

B.

accuracy of image data.

C.

integrity of index data.

D.

initial sequence of index data.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[h0wdyus]

c

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[stoleway]

correct

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[h0wdyus]

that was a guess. 🙂

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[RandomAlt]

Which one of the following is not an income approach to the valuation of a business?

A. Discounted cash flow.

B. Comparable sales.

C. Earnings multiple.

D. Free cash flow.

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[NJPRU]

Hey Lauren/Stoleway!

Long time no talk. I took 2 months off since passing FAR due to person stuff going on and I'll be starting BEC studying come Monday. I'll be sitting for the exam on October 18th. I hope things are going well for the both of you!! Good luck on your exams, I look forward to cheering you on during score release!

– NJ

AUD: DONE
FAR: DONE
BEC: DONE
REG: DONE

IM GOING TO BE A CPA!!!!!

[h0wdyus]

@RandomAlt

D is the answer.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[lauren725]

NJPRU! Ahh I have been thinking about you. I hope things are going well and I will be praying for your studies. I take my exam in exactly a week. Definitely feeling overwhelmed and a little terrified, BUT the amount of material is not as bad as FAR. We will see, this is a tricky one. Hoping we all pass this time. Good to hear from you!!!

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[h0wdyus]

Lauren, how is the prep going. Any thoughts on focus areas.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Anonymous]

The following information regarding a change in credit policy was assembled by the Wilson Wax Company. The company has a required rate of return of 10 percent and a variable cost ratio of 60 percent.

Old Credit Policy

Sales $3,600,000

Average collection period 30 days

New Credit Policy

$3,960,000

Average collection period 36 days

The pretax cost of carrying the additional investment in receivables, using a 360-day year, would be:

a.

$8,160

b.

$5,760

c.

$960

d.

$9,600

Does anyone knows hot to resolve this?

[stoleway]

@NJPRU

Good to have you back, Im preparing to take my exam on Sunday, I might get to join you on the next qtr if I fail this one.

BEC has not been fair to me. I'm only hoping for the best. Good luck with your studies:)

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[mikecuh]

I just wanted to return to let you guys know that I received my exam score of 89 for BEC today. I walked out of the exam frustrated as can be and convinced that I failed because I saw numerous questions I was unfamiliar with. I blamed Becker for not having me adequately prepared for the exam. However, that is not the case. Somebody told me that the exam expects you to apply your knowledge of the material to determine the best answer, they are not going to always ask you direct questions from your material, which in my case was definitely 100% correct. Like it has been repeated many times here, I think the best strategy is to master the material and then master the MCQ. Don't just know the answers, but know why the answers are correct and why the other answers are incorrect. I am sorry if I scared anybody into believing that Becker wasn't adequate with my rant after the exam, because that was not the case. I also supplanted Becker with WTB MCQ. Good luck to the rest of you guys who haven't taken the exam yet!

[h0wdyus]

@cpatobepr

is the answer b 5760 . If yes will send in the solution.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[stoleway]

@mikecuh

Congrats, feels good to get a feedback from you

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Author]

Replies