[jeff]

BEC Resources:

Free BEC Notes & Audio – https://www.another71.com/cpa-exam-study-plan

BEC 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

BEC Score Release: https://www.another71.com/cpa-exam-scores-results-release

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[finne]

Hey all, I just vented on the FAR exam experience thread and I'm ready to jump into the next project for me: BEC. Gonna try and get it done and over with in 3 weeks so I'm in with the November people. Good luck to those taking it over the next few days!

REG - 85
AUD - 99
FAR - 89 - w/ NINJA Audio and Blitz
BEC - 91

Using Wiley - books and test bank - 6 months - all 4 first time

[Anonymous]

@finne I just read about your FAR experience. It doesn't sound much different than mine. It's funny – I felt like a million bucks during Audit and passed by one point and I felt like a Saw movie victim during FAR and REG and passed those by a fairly comfortable margin. My theory is that if you believe that you prepared well for the exam, that gives you a huge advantage over people who go in moderately or under-prepared. When it comes to difficult questions, the only people you're competing against are the other well-prepared candidates who most likely find those same questions to be equally difficult. That being said, I don't want this to turn into a rant, but if you believe that you went into the exam prepared, chances are you were and you most likely passed. Waiting for scores sucks, but I find BEC a blast to study for (even though Becker chapters 2 & 3 are completely miserable) compared to FAR (which every chapter made me consider quitting and applying to McDonalds).

[Anonymous]

@finne I just read about your FAR experience. It doesn't sound much different than mine. It's funny – I felt like a million bucks during Audit and passed by one point and I felt like a Saw movie victim during FAR and REG and passed those by a fairly comfortable margin. My theory is that if you believe that you prepared well for the exam, that gives you a huge advantage over people who go in moderately or under-prepared. When it comes to difficult questions, the only people you're competing against are the other well-prepared candidates who most likely find those same questions to be equally difficult. That being said, I don't want this to turn into a rant, but if you believe that you went into the exam prepared, chances are you were and you most likely passed. Waiting for scores sucks, but I find BEC a blast to study for (even though Becker chapters 2 & 3 are completely miserable) compared to FAR (which every chapter made me consider quitting and applying to McDonalds).

[finne]

@DannyB_Live, lol at that last bit! That pretty much sums up my FAR experience, haha. Hopefully you're right and the time and effort I put in has paid off. Guess I'll find out in like a month.

I think BEC will be a refreshing change for me. I just took a preliminary practice exam in WTB, just to see where I stand, and did surprisingly well doing it totally cold like that. Although there were a lot of questions where I was thinking, “oh darn, this is from that class that I skipped all the time last semester.” So I guess I still have my work cut out for me!

Good luck to you for Friday!

REG - 85
AUD - 99
FAR - 89 - w/ NINJA Audio and Blitz
BEC - 91

Using Wiley - books and test bank - 6 months - all 4 first time

[finne]

@DannyB_Live, lol at that last bit! That pretty much sums up my FAR experience, haha. Hopefully you're right and the time and effort I put in has paid off. Guess I'll find out in like a month.

I think BEC will be a refreshing change for me. I just took a preliminary practice exam in WTB, just to see where I stand, and did surprisingly well doing it totally cold like that. Although there were a lot of questions where I was thinking, “oh darn, this is from that class that I skipped all the time last semester.” So I guess I still have my work cut out for me!

Good luck to you for Friday!

REG - 85
AUD - 99
FAR - 89 - w/ NINJA Audio and Blitz
BEC - 91

Using Wiley - books and test bank - 6 months - all 4 first time

[jpowell31]

Hi, I'm new to the BEC thread. I receive my REG score next week (fingers crossed) and want to jump straight into studying for BEC afterward (or BEC & REG :(). Either way I want to be prepared since I usually end up spending a couple days trying to figure out how to tackle it and then rethink the strategy a few weeks later when I was hoping to start the final review process. I want to prepare my emotions for score release day so I can stay motivated regardless of the outcome (i.e. “no, you cannot celebrate yet” or “no, you cannot spend a week/month in a depressed funk – just get it done”)!

I'll be using Becker 2013 materials – anything I need to know, study tips, timeframe…etc? I'm noticing on this thread that Chapter 2 seems to be horrible with Chapter 6 not too far behind…I'm a better crammer but I'm also working fulltime and December onwards is hectic as I'm sure it is for everyone so while early Jan would be ideal I'd like to put a buffer of a couple of weeks in there – obviously will be different if I'm retaking REG as well. I took cost accounting in college (major: international finance) and graduate school (MBA) so I would like to think I have a good starting point although I know I'm more of a study for an exam type of person than I am a study for life type of person so I'm not sure anything stuck!

Any help is greatly appreciated! THANKS!

[jpowell31]

Hi, I'm new to the BEC thread. I receive my REG score next week (fingers crossed) and want to jump straight into studying for BEC afterward (or BEC & REG :(). Either way I want to be prepared since I usually end up spending a couple days trying to figure out how to tackle it and then rethink the strategy a few weeks later when I was hoping to start the final review process. I want to prepare my emotions for score release day so I can stay motivated regardless of the outcome (i.e. “no, you cannot celebrate yet” or “no, you cannot spend a week/month in a depressed funk – just get it done”)!

I'll be using Becker 2013 materials – anything I need to know, study tips, timeframe…etc? I'm noticing on this thread that Chapter 2 seems to be horrible with Chapter 6 not too far behind…I'm a better crammer but I'm also working fulltime and December onwards is hectic as I'm sure it is for everyone so while early Jan would be ideal I'd like to put a buffer of a couple of weeks in there – obviously will be different if I'm retaking REG as well. I took cost accounting in college (major: international finance) and graduate school (MBA) so I would like to think I have a good starting point although I know I'm more of a study for an exam type of person than I am a study for life type of person so I'm not sure anything stuck!

Any help is greatly appreciated! THANKS!

[stokey45]

I do not understand foreign exchange. I must be looking at it from the wrong perspective.

Example:

P. Co. has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the dollar will drop beofre the payment is received. What should P. Co. do to reduce this risk?

a. Buy 30,000 euros now.

b. Enter into an interest rate swap contract for 30 days.

c. Enter into a forward contract to sell 30,000 euros in 30 days.

d. Platinum cannot effectively reduce this risk.

I could not find a correct answer and “C” is correct. If the euro is going down, then the value of A/R is going down. I understand that one way to mitigate that risk is to sell a forward contract, but in 30 days?? Why wouldn't you sell now when the euro is higher and then if it goes down you received the higher price? Why sell in 30 days when you know the euro will be worth less.

Or is it sell in american funds to get the higher rate? I am confused.

[stokey45]

I do not understand foreign exchange. I must be looking at it from the wrong perspective.

Example:

P. Co. has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the dollar will drop beofre the payment is received. What should P. Co. do to reduce this risk?

a. Buy 30,000 euros now.

b. Enter into an interest rate swap contract for 30 days.

c. Enter into a forward contract to sell 30,000 euros in 30 days.

d. Platinum cannot effectively reduce this risk.

I could not find a correct answer and “C” is correct. If the euro is going down, then the value of A/R is going down. I understand that one way to mitigate that risk is to sell a forward contract, but in 30 days?? Why wouldn't you sell now when the euro is higher and then if it goes down you received the higher price? Why sell in 30 days when you know the euro will be worth less.

Or is it sell in american funds to get the higher rate? I am confused.

[stokey45]

Here is another question. I seem to look at them backwards.

If the dollar price of the euro rises, which of the following will occur?

To me that means the Dollar-up Euro-down

Nope!!

a. The dollar depreciates against the euro.

b. The euro depreciates against the dollar.

c. The euro will buy fewer European goods.

d. The euro will buy fewer US goods.

Correct answer “A” . I understand once they explain if the US dollar is going up or down. But, when I try to look at it myself I seem to look at it the opposite way.

Did anyone have this problem and how did you work it out?

[stokey45]

Here is another question. I seem to look at them backwards.

If the dollar price of the euro rises, which of the following will occur?

To me that means the Dollar-up Euro-down

Nope!!

a. The dollar depreciates against the euro.

b. The euro depreciates against the dollar.

c. The euro will buy fewer European goods.

d. The euro will buy fewer US goods.

Correct answer “A” . I understand once they explain if the US dollar is going up or down. But, when I try to look at it myself I seem to look at it the opposite way.

Did anyone have this problem and how did you work it out?

[Thomas_]

@Stokey45

to answer your first question

P. Co. has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the dollar will drop beofre the payment is received. What should P. Co. do to reduce this risk?

a. Buy 30,000 euros now.

b. Enter into an interest rate swap contract for 30 days.

c. Enter into a forward contract to sell 30,000 euros in 30 days.

d. Platinum cannot effectively reduce this risk.

In order for a company to reduce the risk of currency losses, in this case, if it enters into a forward contract, it locks in the exchange rate today so if the value of the euro goes down, the company will lose money on the receivable and make money on the hedge transaction 30 days from now since it locked in “today's exchange rate” on the date the forward contract is entered into.

FAR - 85 (4/12/13)
REG - 85 (7/18/2013)
AUD - 89 (10/7/2013)
BEC - 84 (11/27/2013)
Done!!!!!!

DO your best, and Forget the rest. - Tony Horton

[Thomas_]

@Stokey45

to answer your first question

P. Co. has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the dollar will drop beofre the payment is received. What should P. Co. do to reduce this risk?

a. Buy 30,000 euros now.

b. Enter into an interest rate swap contract for 30 days.

c. Enter into a forward contract to sell 30,000 euros in 30 days.

d. Platinum cannot effectively reduce this risk.

In order for a company to reduce the risk of currency losses, in this case, if it enters into a forward contract, it locks in the exchange rate today so if the value of the euro goes down, the company will lose money on the receivable and make money on the hedge transaction 30 days from now since it locked in “today's exchange rate” on the date the forward contract is entered into.

FAR - 85 (4/12/13)
REG - 85 (7/18/2013)
AUD - 89 (10/7/2013)
BEC - 84 (11/27/2013)
Done!!!!!!

DO your best, and Forget the rest. - Tony Horton

[mary28]

Barclay Corporation invested $600,000 in a capital project, including $40,000 in installation charges. The project had a useful life of 12 years with no salvage value and generated cash flows of $150,000 each year. Assuming a 30% tax rate and straight-line depreciation for tax purposes, Barclay’s after-tax cash flows per year would have been equal to:

With the answer being $120,000.

Anyone know why they would solve this by doing 150,000 x 30%? I thought it was 150,000x(1-.30)?

[mary28]

Barclay Corporation invested $600,000 in a capital project, including $40,000 in installation charges. The project had a useful life of 12 years with no salvage value and generated cash flows of $150,000 each year. Assuming a 30% tax rate and straight-line depreciation for tax purposes, Barclay’s after-tax cash flows per year would have been equal to:

With the answer being $120,000.

Anyone know why they would solve this by doing 150,000 x 30%? I thought it was 150,000x(1-.30)?

[Author]

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