[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

[GoVPI]

If entry barriers are high, then that means its rare to get in. But I don't agree that its a threat if exit barriers are low. That would be good for a company, meaning they can get out easily if it goes south. Weird question

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[RandomAlt]

@ CPAin14, I think a lot of these types of questions are hard because there are multiple ways to interpret it.

As my interpretation from reading goes (and I literally just finished this section in CPAexcel today), generally, if you have a low barrier to entry, you also have low exit barriers. I don't believe they move in opposite directions. So low exit barriers implies low entry barriers…and low entry barriers are a threat.

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[M.O.D.]

Gleim explains that the best of both worlds for an incumbent is high barriers to entry and low barriers to exit. These can exist independently (though in real life that is rare).

So a low barrier to exit is an attractive feature, which might entice entrants, thus present a threat to entry…

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)

[Anonymous]

Hey everybody, I'm planning on taking BEC around August 8th and trying to squeeze in audit before the quarter ends.

Is that realistic? I don't start work until September and have no job but to study. I would like to take 2 parts but I'm just not sure if I'm being unrealistic giving myself less than 3 weeks for audit. Any comments/advice is appreciated!

[M.O.D.]

Take practice tests. If they pass you take it, otherwise no.

No need for “realism.”

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)

[lauren725]

^^ disagree with the practice test comment. They make me crazy and I will never take on again. (It's not for everyone) 🙂

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!

[JamesBJames]

I'll toe the line. Practice tests are useful for a variety of reasons, and the regression analyses I've done say they can explain somewhere between 30-45% of your exam score (lowest correlation: BEC, highest correlation: FAR), but don't freak out if you do badly on them. They can be great to figure out where your weak areas still are.

(EDIT: Double-checked numbers; revised)

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!

[GoVPI]

What is the cost of ending inventory given the following factors?

Beginning inventory $ 5,000

Total production costs 60,000

Costs of goods sold 55,000

Direct labor 40,000

$ 5,000

$10,000

$45,000

$50,000

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[stoleway]

$10,000

COGS= BI + COGM – EI

Therefore EI = BI + COGM – COGS

=5,000 + 60,000 – 55,000

=10,000.

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

Mass-CPA

[GoVPI]

@stoleway— thanks!

A company sells 10,000 skateboards a year at $66 each. All sales are on credit, with terms of 3/10, net 30, which means 3% discount if payment is made within 10 days; otherwise full payment is due at the end of 30 days. One half of the customers are expected to take advantage of the discount and pay on day 10. The other half are expected to pay on day 30. Sales are expected to be uniform throughout the year for both types of customers. Assume that the average collection period is 25 days. After the credit policy is well established, what is the expected average accounts receivable balance for the company at any point in time, assuming a 365-day year?

$684.93

$1,808.22

$27,123.30

$45,205.48

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[h0wdyus]

@cpain14

What is the answer. Is it 45,205.48 ?

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

FROM NJ

[GoVPI]

Yes

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[h0wdyus]

Receivable Turnover ratio = Credit Sales / Avg AR

collection period ratio = 365/Reciveable turnover ratio

We have to find Avg AR

Collection period ration ( given ) 25 =365/Receivable Turnover ratio

so Recievable Turnover ratio = 14.6 ( 375/25)

applying receivable turnover ratio formula

14.6 = 6600000 ( credit sales) / Avg AR

Avg AR = 6600000/14.6 = 45,205.48

This was one of the toughest one. The question is worded really bad. Just have to take your chances. Don't let this question judge you and your understanding.

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

FROM NJ

[stoleway]

Question….

if RRR > ERR

Accept or reject?

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

Mass-CPA

[M.O.D.]

Required rate of return is established by the company as the minimum rate acceptable for new projects.

Expected rate of return is the project's expectation.

So if expectation is below requirement, reject.

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)

[Author]

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