[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]

Good Morning Everyone. One more day closer to the exam. Yeah Stoleway must be a busy right now.. It would be fun if he is seeing similar questions to what we have been discussing over the past few days.

As for the question. I have not read anything like this.

I am going to go with B as the answer. I think in the long run all inputs vary , even FC. So B.

FAR - 81 29th Aug 2013
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FROM NJ

[Zackrampage]

I think B a well.

FAR - 62 , End of aug 2015
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[Anonymous]

I will be taking the exam on saturday!! I'm soooo stress out…..

I also go with B in the long run all cost tend to be variable , including fixed costs

[RandomAlt]

@h0wdyus & cpatobepr … You are both correct. It is B

It the short run analysis at least one input must be fixed (Variable costs + Fixed Costs)

In a long-run analysis, all inputs can be varied

Sorry for disappearing without the answer. My wife is sick, so I'm watching the kid. Thought I could study with him around…silly daddy. Took him to the park to run the energy out. Hes napping now, so I'm back to studying until he wakes up.

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[h0wdyus]

Wrong time for wifey to get sick. Anyway getting out of the house is a good idea. I was outside walking too.

Got to do some serious review work today.

Any news of Stoleway. He should be back home now.

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

FROM NJ

[TigerWoods]

Reviewing econ. All I can say is I hope Becker is fairly presenting this because it's easy

[RandomAlt]

Rose and McMullin, a regional public accounting firm, has recently accepted a contract to audit On-the-Spot, Inc., a mobile vending service that provides vending machines for large events. On-the-Spot uses a computerized accounting system, portions of which were developed internally to integrate with a standard financial reporting system that was purchased from a consultant.

What type of documentation will be most useful to Rose and McMullin in determining how the system as a whole is constructed?

A. Operator documentation.

B. Program documentation.

C. Systems documentation.

D. User documentation.

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[h0wdyus]

C . should show how different parts are integrated.

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

FROM NJ

[TigerWoods]

Seems like most people had a lot of calculations this go round. I guess these next few days I'll be focus on the math intensive parts of Becker.

[RandomAlt]

C is correct.

I like this basic guide to documentation

Systems = The Overview (which would be good for an auditor)

Program = The details. How it works

Operating = “Run Manual” – How to run the system

User = The idiots guide to ” “

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[RandomAlt]

An increase in taxes on cigarette production would cause which one of the following to occur?

A. The supply curve will shift outward.

B. The demand curve will shift outward.

C. The supply curve will shift inward.

D. The demand curve will shift inward.

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[h0wdyus]

@Random

I like the guide. 😉 keep up the good work.

FAR - 81 29th Aug 2013
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BEC - 89 29th Aug 2014
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FROM NJ

[h0wdyus]

Answer C. since cost of production goes up. suppliers will not produce more of it. The selling price stays same, demand is not affected, but suppliers profit falls. Supplier will produce lesser. It is a shift because the change in supply is not created by movement of selling price, but by other factors such as cost.

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

FROM NJ

[EYNewHire]

C I think.

[Zackrampage]

C i think.

P.S Stoleway where are you haha

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[Author]

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