[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

[Anonymous]

So….I'm over BEC….what to do now lol..

[h0wdyus]

@Nick.

I knew you are genius. You finished everything. Good job.

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

FROM NJ

[Anonymous]

Lol..but I'm not…last minute studying isn't going to change anything for me..

I know what I know…

Someone want to get a group review session started. Looking at you @Howdy…

[Anonymous]

@Nick sounds very similar to my summer. I also start October 6 at GT. Where are u working?

[EYNewHire]

I'm down for a review session.

[h0wdyus]

Nick

I am a last minute crammer. I will keep studying till 12 AM. I wont be much help with the review. I will be watching the thread though.

Right now I am going to take a quick nap,

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

FROM NJ

[Anonymous]

I am also a EY New Hire as is @EYNewHire….

[EYNewHire]

@_Nick_ Nice. Good luck. What service line? I just wasn't very creative with my username. I started studying for the CPA almost immediately after accepting my offer and it was still fresh in my mind when I registered in the forum.

[Anonymous]

The Frame Supply Company has just acquired a large account and needs to increase its working capital by $100,000. The controller of the company has identified a source of funds which is given below:

Pay a factor to buy the company's receivables, which average $125,000 per month and have an average collection period of 30 days. The factor will advance up to 80 percent of the face value of receivables at 10 percent and charge a fee of 2 percent on all receivables purchased. The controller estimates that the firm would save $24,000 in collection expenses over the year. Assume the fee and interest are not deductible in advance.

Using a 360-day year in all of your calculations, the cost of factoring is:

14.8 percent.

12.0 percent.

16.0 percent.

20.0 percent.

[YORKER]

16 percent?

[Anonymous]

Correct, Yorker

Atlas Worldwide Industries conducts business in a number of different countries and is trying to evaluate its economic exposure to exchange rate risk. Which of the following statements is not correct?

Atlas will enjoy an economic gain in the event it has net cash outflows of a foreign currency and the foreign currency depreciates.

Atlas will suffer an economic loss in the event it has net cash outflows of a foreign currency and the foreign currency appreciates.

Atlas will suffer an economic loss in the event it has net cash inflows of a foreign currency and the foreign currency depreciates.

Atlas will suffer an economic loss in the event it has net cash inflows of a foreign currency and the foreign currency appreciates.

[YORKER]

$125,000*.08*.1

=$10,000 (interest)

$125,000*.02*12

= $30,000(fee)

$40k-$24k(savings)

=$16k

$16k/$100k

=16 percent

[Anonymous]

Given that demand exceeds capacity, that there is no spoilage or waste, and that there is full utilization of a constant number of assembly hours, the number of components needed for an assembly operation with an 80 percent learning curve should

I. Increase for successive periods.

II. Decrease per unit of output.

I only.

II only.

Neither I nor II.

Both I and II.

[rzrbkfaith]

@_Nick_

Answer:

Atlas will suffer an economic loss in the event it has net cash inflows of a foreign currency and the foreign currency appreciates.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Anonymous]

I hate questions like this..

The Knight Corporation completed its annual retreat of board members and senior management and produced a document that links the organization’s mission and vision with strategic and related objectives. The document includes an objective that the Knight Corporation will rank in the top quartile of quality for its industry. That objective would most likely be a:

Related operations objective.

Related reporting objective.

Strategic objective.

Related compliance objective.

[Author]

Replies