[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

[lauren725]

Mike – awesome awesome news, congrats. Glad to hear Becker prepared you well.

Howdy – I am spending today on variance analysis as I have the day off and need to concentrate on this. I have reviewed the other material at least one time, for the exception of the last few subjects in Becker. I plan to finish the material this weekend and continue reviewing and then probably reading notes and doing MCQ's. I also have not reviewed much of the writing portion but I think I will after I review more. I want to make sure I have most of the concepts down first.

How are things going for you? How do you plan to spend the next week? I feel that this is the most stressful part. Hoping to be very efficient for this last week!

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!

[RandomAlt]

@cpatobepr … I Got D

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

[h0wdyus]

@Laurnen

Going over Governance , IT , ECO , by the end of Sunday. Then dive back into the Costing piece. Praying. The stress is really building up. Staying in the forum is sort of therapeutic . 🙂

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

FROM NJ

[lauren725]

Nice, yes I think governance, IT, cost and all the formulas will be the majority of my review. I definitely don't want to spend too much time on one particular area. Yes, I agree. This forum helps the stress! It definitely helped me with FAR in Q2 and it is nice to know people are on the same page with you and the motivation helps a ton!! That is very exciting that this could be your last test. Good luck this weekend, I will be checking back with ya'll periodically!

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]

@cpatobepr

The catch is you did not take 60% of the sales to calculate cost of financing. 60% is the cost of material invested, the company has not invested capital in the profit element. So taking the Sales figure which is part of the AVG A/R would not be correct.

So take the cost 237600 – 180000 = 57600 take 10 % of this amount

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

FROM NJ

[RandomAlt]

@cpatobepr & h0wdyus …

Thanks for the details h0wdyus, I see what I missed.

This is what I did

Collection Period = 360 / AR Turnover

A/R Turnover = Credit Sales / Avg AR

Old:

30 days = 360 / AR Turnover –> AR Turnover = 12

12 = 3,600,000 / Avg AR –> Avg AR = $300,000

New:

36 days = 360 / AR Turnover –> AR Turnover = 10

10 = 3,960,000 / Avg AR –> Avg AR = $396,000

Difference in AR = $396,000 – $300,000 = $96,000

[Next is the part I missed]

The difference in COST is –> 96,000 x .6 = $57,600

Additional Cost = $57,600 x 10% = $5,760

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

[RandomAlt]

Activities that can be useful in monitoring control system effectiveness include all of the following except

A. benchmarking assessments

B. focus groups and interviews.

C. segregation of duties.

D. reviewing flowcharts and other risk and control documentation.

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

[h0wdyus]

@RandomAlt

C . It is not part of monitoring. It is part of control activities.

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

FROM NJ

[RandomAlt]

@h0wdyus Correct!

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

[Anonymous]

@ RandomAlt & @howdyus

Thanks for the answer!! now i understand it

[h0wdyus]

@cpatobepr

Keep sending interesting questions over, even if you know the solution. Where did you get this one from.

How can we get AICPA release questions for the past 3 years ?

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

FROM NJ

[stoleway]

Data processed by a computer system are usually transferred to some form of output medium for storage. However, the presence of computerized output does not, in and of itself, assure the output's accuracy, completeness, or authenticity. For this assurance, various controls are needed. The major types of controls for this area include:

A.

activity listings, echo checks, and pre-numbered forms.

B.

tape and disk output controls and printed output controls.

C.

input controls, tape and disk output controls, and printed output controls.

D.

hash totals, tape and disk output controls, and printed output controls.

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

[stoleway]

What is a scattergraph?

A A method for forecasting product demand on an X/Y axis.

B A graph to help compute the relationship between two variables.

C A chart designed to pinpoint unexpected changes as a result of variable costing.

D A graphed picture created to pick up negative trends in sales figures over time.

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

Mass-CPA

[Author]

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