[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

[EYNewHire]

@h0wdyus I'm sure you'll do well. I kind of wish my exam is tomorrow instead of on Saturday.

[rzrbkfaith]

@anothercpa23

When applying overhead you use the actual cost driver x the standard rate.

When figuring the variance it depends on what kind of variance you are looking for… Remember S-E-V… A BA BS A

S – spending (actual vs budgeted rate x actual cost driver)

E – efficiency (budgeted rate x actual cost driver vs budgeted rate x standard cost driver)

V – volume (budgeted rate x standard cost driver vs overhead applied)

Figuring over or underapplied overhead is the actual cost driver x the standard rate compared to the actual overhead.

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

[rzrbkfaith]

@h0wdy

I sure hope so! I am so stinking nervous on this one!!! I knew I had the material down for AUD, this one scares me a little bit.

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

[h0wdyus]

I am going to get the easiest test ever created in BEC. Yes Sir.

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

FROM NJ

[h0wdyus]

If management has a variable rate short-term loan and is concerned about the volatility of short-term interest rates, which of the following would not be an effective hedging strategy?

Purchase a short position in the Treasury bill futures market.

Enter into an interest rate swap.

Enter into a forward contract to sell Treasury bonds in the future.

Enter into a forward contract to purchase Treasury bills in the future.

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

FROM NJ

[EYNewHire]

Enter into a forward contract to purchase Treasury bills in the future.

[h0wdyus]

Which of the following formulas should be used to calculate the economic rate of return on common stock?

(Dividends + change in price) divided by beginning price.

(Net income – preferred dividend) divided by common shares outstanding.

Market price per share divided by earnings per share.

Dividends per share divided by market price per share

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

FROM NJ

[EYNewHire]

(Dividends + change in price) divided by beginning price.

[Anonymous]

I wish I hadn't read some of those BEC experience threads..

[YORKER]

Out of all of the exams I feel the most unprepared for this one but you know what I still cant wait to just take it already. I am sure we will all do fine and pass.

[rzrbkfaith]

@EYNewHire

You totally have this!!!

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

[EYNewHire]

@rzrbkfaith Thanks for the vote of confidence. I have many things this is not one of them, however. 🙂

Honestly though I think I can pull a 75 which is all that matters.

[Anonymous]

Friend from home took it today: variances weren't as complex as Becker (obviously) and he felt fine..said IT and corporate governance were some of the few things that tripped him up surpsingly

[h0wdyus]

@EYNewHire Right

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

FROM NJ

[h0wdyus]

A company has a foreign-currency-dominated trade payable, due in 60 days. In order to eliminate the foreign exchange risk associated with the payable, the company could

Sell foreign currency forward today.

Wait 60 days and pay the invoice by purchasing foreign currency in the spot market at that time.

Buy foreign currency forward today.

Borrow foreign currency today, convert it to domestic currency on the spot market, and invest the funds in a domestic bank deposit until the invoice payment date.

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

FROM NJ

[Author]

Replies