[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

[RandomAlt]

Which of the following forms of economic activity is considered in macroeconomics, but not in microeconomics?

A. Individuals providing economic resources to business entities.

B. Individuals paying taxes to the federal government.

C. Individuals paying business entities for goods/services.

D. Individuals receiving payments from business entities.

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]

B?

[h0wdyus]

B

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

FROM NJ

[RandomAlt]

B is correct:

Microeconomics:

Businesses

Individuals

Macroeconomic:

Businesses

Individuals

Government

Financial Sector

Foreign Sector

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]

paying taxes is fiscal policy and part of macro eco.

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

FROM NJ

[Anonymous]

A company currently has 1,000 shares of common stock outstanding with zero debt. It has the choice of raising an additional $100,000 by issuing 9% long-term debt, or issuing 500 shares of common stock. The company has a 40% tax rate. What level of earnings before interest and taxes (EBIT) would result in the same earnings per share (EPS) for the two financing options?

a. An EBIT of $10,800 would result in EPS of $7.92 for both.

b. An EBIT of $18,000 would result in EPS of $7.20 for both.

c. An EBIT of $27,000 would result in EPS of $7.20 for both.

d. An EBIT of $27,000 would result in EPS of $10.80 for both.

[h0wdyus]

How is stoleway feeling on the eve of the exam. Your thoughts Stoleway.

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

FROM NJ

[yourmomsaCPA]

Test is Tuesday and I'm starting to get my normal pretest freakout mode. Good grief there are a TON of ratios! I don't know….(deep breaths. Deep breaths).

FAR - 87 2/18/14
AUD - 84 4/2/14
REG - 87 7/23/14
BEC - 78 8/26/14

I'm finally an *official* CPA - TX

[stoleway]

@h0wdyus

Sorry I was out somewhere in the park trying to cram all these formulae's, I'm pretty much prepared and have even stop studying. Its me and BEC tomorrow, it could go either way lol

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

Mass-CPA

[Anonymous]

Someone can feel free to keep asking questions

[M.O.D.]

Essay question: A new business owner interested in financing his new business is asking you:

What is the difference between preferred stock, common stock, and debt. What are the benefits and disadvantages of each?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[h0wdyus]

stoleway. Good luck you will make it. Just read the question carefully, that is all I think of. What time is your exam. Please post back when you get back.

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

FROM NJ

[h0wdyus]

MOD

The question you put there, is it from one of the test bank or you made it up, or is it … 🙂

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

FROM NJ

[stoleway]

Thank you howdy…my exam is 8am

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

Mass-CPA

[Anonymous]

M.O.D., I would kill for that topic on the test.

[Author]

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