[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

[JamesBJames]

@Zack, I figured the answer was B before I looked at your explanation.

If average household income increases, then the demand curve shifts right. People have more money and are therefore willing to buy more of a product at each price level. Pretty straightforward.

Choice A is wrong because it describes a change in quantity demanded. Your logic is just a little off, but that's easy to fix. A change in quantity demanded results when there's a change in the price OF THE GOOD IN QUESTION. If the problem said, “The price of houses goes up. How does this affect the housing market?” then choice A would be correct.

There's a Becker question that I like that elaborates on this a little. It's something along the line of, “The price of gasoline increases. How does this affect the demand for cars?” The answer is that the demand line for cars shifts left (a shift in demand). If they asked about the demand for gasoline, instead, then it would be a movement along the demand line (a change in quantity demanded).

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

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[stoleway]

@Zackrampage

I was leaning toward the major budgets which are Strategic, Operational and Financial budgets.

static and flexible is just used to determine variances, separating budgeted figures from actual figures.

static budget is the same as the master budget, it doesn't change.

@CPAin14

I'm using Gleim, so I cant really help on that aspect.

The four derivatives are

1.interest rate swaps

2.Forward starting interest rate swaps

3.Interest rate caps

4. Floors and Collars

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

Mass-CPA

[Zackrampage]

@James there is def something I am missing. So is it not the case that anything other than price causes a shift of the curve, while price causes movement along the curve? Sorry something isn't tying for me.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[JamesBJames]

No, you're right. A change in price causes movement along the curve. Essentially everything else causes a shift of the curve. You just have to be careful when you read the question. For example:

If they're asking about good X and say the price of good X decreases, then the quantity demanded of good X will increase (movement along the curve).

If they're asking about good X and say the price of good Y decreases, and good Y is a substitute for good X, then the demand of good X will decrease (shift of the curve)

If they're asking about good X and say the price of good Y decreases, and good Y is a compliment of good X, then the demand of good X will increase (shift of the curve)

That should cover most of it.

(EDIT: corrected an error, my bad)

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[Zackrampage]

From what I got after reading them for a few minutes and thinking is that if it talks about just one good, and a price othat one good goes up or down it is a movement along a curve. If they ask about one good in relation to another good it is a shift in whatever direction depending on increases or decreases of the original good. Is that correct? 1 good = movement along the curve. 2 goods = shift?

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[JamesBJames]

Yeah. That sounds about right. Questions about compliments and substitutes will cause the supply and demand curves to shift. Questions that deal with one good and a direct change in price of that good will cause a change in quantity demanded.

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[Zackrampage]

And movement along curve for last part right? I just read the whole section on this in The ninja bec book.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[JamesBJames]

Right. A change in quantity demanded is synonymous with movement along the demand curve.

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[Zackrampage]

Thanks James think I got it, but we will see when I do more econ questions.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[lauren725]

Alright, becker peeps – reviewing B2 for the first time after finishing B3 and I am still having issues getting through the MCQ's. I will keep trying but I am probably at like 60% MAYBE… I have printed out the topics giving me issues, which is most of them and will keep looking at the questions but I am not feeling like this is going anywhere. Has anyone else felt the same? Parts of B3 were a tough in my book but POSSIBLE, some of these B2 questions I just can't wrap my head around. any advice? thanks ya'll!

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!

[lauren725]

The test outline says this section is only 10-14% of the test which makes me feel a little better, if this is true. but we all know those outlines can be wrong!

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!

[Zackrampage]

Lauren your not alone. I am not doing well on my bec becker mcq either. It really scares me.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[lauren725]

I am trying not to stress out too much because I definitely felt this way with some FAR subjects and still managed to pass. I guess since because BEC has less material and this section has so many homework questions I am thinking I need to spend more time on it. It is just so much and I am wondering if it is all necesary. I guess its just the luck of the draw on test day.

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!

[Pumpkins]

Hey guys, how hard are the Becker questions as far as capital budgeting/capital projects?

I'm doing Gleim and I got to those chapters today and they were just terrible. The questions were really in depth, multi step calculations. I'm hoping the questions aren't that hard on the actual exam, and I hear Beckers questions are more similar to the exam…

Just trying to figure out how much time to spend on learning how to do all those problem, there are about 20 different formulas for capital budgeting.

AUD- 93
BEC- 81
FAR- 1/26/2015
REG- TBD

CIA Exams Passed in March, 2014

[stoleway]

@pumpkin….with capital budgeting, knowing the formulaes will make your life easier.

Gleim is not that terrible, but could be very wordy.

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

Mass-CPA

[Author]

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