[jeff]

Welcome to the Q4 2017 CPA Exam Study Group for BEC. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your BEC exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

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

[Anonymous]

First time poster here – took BEC this morning.
Won't divulge what was on the test besides it was pretty in line with what everyone else is saying.
I would definitely recommend doing the IT questions on cpareviewforfree. It has some questions on terms that ended up being on the test and helped me make a much better educated guess.

[rencpa]

That's a pretty good idea how to address variances. It took some of my time to understand them, but I cannot say I am a specialist with variances.

Of course, thank you RB for your help, AGAIN 🙂

@I like it… CPA, thanks for your feedback. Looks like everyone gets similar “gift from AICPA Santa”, IT questions.

Where is my Jennifer? How you are doing?

[jenpen]

Hey, ren. I'm around. Riding the struggle bus today for motivation, and my scores are sucking when I do attempt anything. I need to get my head in the game!

How's your little one?

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[rencpa]

@ Jen…Nice to hear from you. Maybe you need to get some more sleep tonight? You do not want to be too tired. Treat yourself with a something nice today/tomorrow; whatever you like (a nice hot bath, a movie that will make you laugh…). Tell yourself, “I did my best to get ready”! I believe you did. And yes, still keep reviewing. But personally, when I feel the way you feel, I just read. I do NOT try to answer questions because I want my confidence to be high, not low. If I answer something incorrectly a day before the exam, I feel like I didn't learn anything. And this is not the case! Think what helped you before other exams. Do what works the best.

My son stayed home today, but finally my husband is back. Thankfully, he is still that little that he needs a nap around 12-2 pm. I had some time off. Think he would be able to go tomorrow. Hope. And thank you for asking!

[rencpa]

Speaking about the questions… a night before my exam, I ALWAYS take one or tow set of questions. For instance for BEC, I know I will take 31 or 62. And I will answer them (not read). It is my rule! ALWAYS! 🙂

[jenpen]

This year, I have started answering some questions before I leave for the exam. I feel like the first couple of sets I do are the worst as I'm getting my brain back to work and thinking about this stuff. I feel like it's been helping me to at least be a little less nervous. Then I get to the center a good amount of time before I need to, usually about 30 minutes, and look over a few notes or formulas I know I'm weak on. Last minute cramming. 🙂

I do think I'm going to read some tonight. I feel like that's all my brain can handle, and hopefully it will help get some of the IT terms in my head. And of course, cost accounting. I need to get a better grasp on ABC and variable accounting differences.

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[bobby]

Quick question for those who have already taken the exam and prepared with Becker beforehand!

How helpful was studying Chapter 6, primarily with Information Technology, for BEC?

[rencpa]

You are going to do it. Just help yourself to relax. You have the most important hours in front of you.

Some people are able to study the best just hours before the exam. Their learning ability is growing like crazy before the exam. I used to date someone like that. For me, I am the opposite. I can only learn something new after I review what I did. Ask yourself what would be the best benefit for YOU.

Okay, time to go back. Good luck to you. Good luck to other people who take the exam this weekend! Hope somebody else will join me here after your exam 🙂 Please.

[rencpa]

Bobby, I haven't taken yet, but do NOT skip (?) I believe there must be something from that chapter on the exam.

[jenpen]

@bobby Like ren said, definitely don't skip that section. The test seems to be highly COSO and IT based lately. I've seen others around here say that the IT section on Becker is not great, but something is better than nothing. I believe @RB used Becker, and he said that he used the Wiley free trial to beef up his IT knowledge.

Hopefully someone else with actual experience can chime in, but I just wanted to acknowledge your question.

@rencpa We won't abandon you this week! We got this – just gotta keep on pushing!

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[jenpen]

Can someone help me with this question? I don't understand the explanation and how the are getting the answer.

Allo Foundation, a tax-exempt organization, invested $200,000 in a 5-year project at the beginning of 2006. Allo estimates that the annual cash savings from this project will amount to $65,000. The $200,000 of assets will be depreciated over their 5-year life on the straight-line basis. On investments of this type, Allo's desired rate of return is 12%. Information on present value factors is as follows:

AT 12% AT 14% AT 16%
—— —— ——
Present value of 1 for 5 periods 0.5674 0.5194 0.4761
Present value of an annuity of
1 for 5 periods 3.6048 3.4331 3.2743
Allo's internal rate of return on this project is:

A.
less than 12%.

B.
less than 14%, but more than 12%.

C.
less than 16%, but more than 14%.

D.
more than 16%.

Internal rate of return is the interest rate which will result in a net present value (PV) of zero. Therefore:

PV of Cash Savings = PV of Investment Outlay
$65,000 x PV factor = $200,000 x 1.0
$65,000(PV factor) = $200,000
Then dividing by $65,000:

PV factor = $200,000 / $65,000
= 3.08
Referring to the present value factors in the question, the percentage rates for present value of an annuity indicates that a present value factor of 3.08 would relate to an interest rate of more than 16%.

AUD - 56 - 68 - 61 - 9/8/16
REG - 75
FAR - 7/15/16
BEC - TBD

Wiley CPAexcel and NINJA 10 Point Combo

[Anonymous]

Dear all,
For overhead variances, I strongly recommend watching Roger's videos on youtube – he does an excellent job explaining them. Three plus four is SEVen, the variances are Spending, Efficiency, Volume. Just watch them, everything will click and you will have no difficulty working the mcqs/sims on those. Helped me tremendously

[rencpa]

Jennifer,

You have the answer, just do not see it at this moment.

Your first sentence stated, “Internal rate of return is the interest rate which will result in a net present value (PV) of zero.” It is a rule for IRR like 2 +2 = 4! Period!

PV of Cash in xx
-Pv of Cash our (xx)
= NPV $0 It is a must for IRR! Do you see this way?

I know you can solve the equation for PV Factor. No doubt about it.

Go to the PV of annuity of $1…. 5 years line and look for a PV Factor closest to your 3.06. I got 3.058 for 19%. Cannot present you my table.

Hope I answer your question.

I believe that because it it tax free organization, depreciation is irrelevant. Correct?

[rencpa]

Thank you AndyCPA. It doesn't hurt to watch even though I feel okay, maybe I can feel stronger. Who knows what these people can ask.

[rencpa]

Jen, if you have NO table. Remember, the PV Factor is getting smaller as the xx% increases. You have PV for 12%, 14%, 16%.

Notice the PV Factor is getting smaller: 3.6048 (12#+%), 3.4331 (14%) 3.2743 (16). You need 3.08, which is SMALLER then 3.2743. This means: your IRR rate is HIGHER than 16%. In case you have no table, you cannot say it is 19, but you should be able to say, “it is more than 16%” because the last factor they gave you was 16% PV Factor

[Author]

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