[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[monikernc]

my ninja practice exam went well but too many of the questions are familiar. had quite a few i had not seen in awhile. just keep plugging away till i am done with this thing. i forgot how much tine is saved not reading a response every time i hit enter. and it forced me to do some writing exercises which i have been avoiding

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

That is true, moniker … just reviewing the answer solution takes extra time. Do you have the Becker software? If you don't I can post a couple questions from their practice exam (which I am pretty sure are unique to the practice test set).

[MaLoTu]

Can anyone explain this math to me … I get .75S … they have .25S … If they take the .25s (as being the remaining of .75S), then why don't they say what the heck they did there and why?

Choice “b” is correct. Sales of $80,000 provide a 15% return on sales. The required sales volume may be computed algebraically as follows assuming sales = “S” as follows:

S − 0.6S − $20,000 = 0.15S

S − 0.6S − 0.15S = $20,000

0.25S = $20,000

S = $20,000 ÷ 0.25

S = $80,000

ETA the question …
Brewster Co. has the following financial information:

Fixed costs $ 20,000

Variable costs 60%

Sales price $ 50

What amount of sales is required for Brewster to achieve a 15% return on sales?
a. $133,333
b. $80,000
c. $33,333
d. $50,000

[Anonymous]

Algebraic percentage in US$:

100%….. $80,000 Sales
60%……..-48,000 VC
25%……..-20,000 FC
——————————-
15%……..$12,000 Profit / Return on Sales
=================

[monikernc]

MaLoTu – if your offer still stands send some questions. i am tired of ninja right now. if you are busy, that's ok

i wonder how payaza is doing.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

MUST REMEMBER:

DOL = pct chg Operating Income / pct chg Volume in units

DFL = pct chg EPS / pct chg EBIT

FAR- 80
BEC- 75
AUD- 78
REG- ?

[MaLoTu]

NP, moniker.

Siggas Corp. is a Greek shipping company. They will need to buy $1,000,000 USD with Euros in six months. The risk exposure faced by the company that the value of the Euro will fall in relation to USD is referred to as:

Purchasing power risk

Transaction exposure

Translation exposure

Economic exposure

(I have to rewrite them … so I will post answers after)

[MaLoTu]

The relevance of a particular cost to a decision is determined by:

number of decision variables

potential effect on the decision

accuracy of the cost

riskiness of the decision

[MaLoTu]

Wyley, Inc. purchases an item on credit with terms 3/10, net 45. Based on a 360-day year, Wyley's annual interest cost of forgoing the cash discount and making payment on the last day of the credit period is:

30.86%

24%

31.81%

37.11%

[MaLoTu]

A project manager is responsible for all the following, except:

Procuring team members

Carrying out work in the project plan

delegating responsibilities among team members

Communicating with stakeholders

[monikernc]

1. Translation exposure
2. Potential effect
3. 31.81%
4. Carrying out work in the project plan

I will post answers and ask if if i need a solution. Thanks so much.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

The bond-yield-plus approach to estimating the cost of common equity involves adding a risk premium of 3% to 5% to the firm’s

a. Cost of short-term debt.
b. Cost of long-term debt.
c. Return on assets.
d. Return on equity.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

Farwars- B?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[MaLoTu]

The first one is transaction risk, but all the others are right.

Translation and transaction are very tricky to distinguish! I got that one wrong too. I went with communicate with the stakeholders on the PM question because I thought it would be weird for a PM to talk to stockholders … but now I realized it was stakeholder and not stockholder! lol.

[FAR_WARS]

B is correct

The requirement is to identify how the bond-yield- plus approach to estimating the cost of equity is applied. Answer (b) is correct because the bond-yield-plus approach involves adding a risk premium of 3% to 5% to the interest rate of the firm’s long-term debt. Answers (a), (c), and (d) are incorrect because they involve items that are not components of the formula.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Author]

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