[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for BEC. 🙂

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

[jeff]

2017 Update Video:

2017 CPA Exam Update Summary

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

[Abdulmajid]

For all people who are suffering from save the Economic concepts

I like it ! looool

[Abdulmajid]

Anyone can help me how to get the answer ??

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?

Answer: 80,000

the explaination in Ninja MCQ was not that clear

[SONA]

Can anyone tell me where is the practice question for Capital Budgeting in NINJA MCQs specifically.

[jjjgolf500]

The formula is (Fixed Costs + Desired Profit)/CM % = Sales

(20,000 + 15%x)/40% = x

x = 80,000

[Jsn3004]

An entity is examining potential investments and notes that 1‐year maturity yields are higher than those for 10‐year maturities. Which of the following explanations for this occurrence is best?

The short‐term investments have higher liquidity and therefore carry a higher rate of interest.

The short‐term investments carry a more immediate default risk premium resulting in higher rates of return.

The long‐term instruments provide a longer stream of investment income and therefore carry a lower rate of return.

Investors are expecting reduced inflation in the future as reflected in the lower long‐term returns.

Answer: D. Can someone please explain why the answer is D and not B? To me it just seems obvious that the answer is B. I figured if an investment carries more risk, then interest would be higher.

[rhayder]

The default risk is related to the credit rating of the borrower. The default risk for U.S. Government bonds is normally considered zero regardless of the maturity of the instrument. This effectively eliminates “B” as a possible answer. Inflation expectations would still affect the yields.

[Abdulmajid]

Thanks jjjgolf500

[QueenCPA]

Hi Everyone,

Am I the only one struggling with the Strategic Planning questions?

Any advice on how to ace this section 🙂 ?

[jjjgolf500]

Hello,

Wondering if there is a way to ONLY choose question you HAVE NOT seen when starting a MCQ quiz on NINJA? If so, I must be missing something.

Thanks

[kjack8799]

@jjjgolf500 click “Custom + Sims” button, “Questions selected from” drop down, and select “New Questions”.

[Jsn3004]

Which one of the following is the annual rate of interest applicable when not taking trade credit terms of “2/10, net 30?”
2.00%
24.00%
36.00%
36.73%

The answer is D. Can someone please explain why though. I was able to mess with some numbers and get to 36.73% but I don't know why that is the answer. I've been pretty disappointed in CPA Excel's new format of MCQs. Many of the questions that require math give pretty subpar explanations.

[Anonymous]

the formula is as folows:
360/30-10*(.02/.98)=.3672 or 36.72%

[JMG]

Hey everybody,
I just scheduled BEC for March 5, it will be my first attempt. I'm also taking REG some time around mid January. Hopefully I can knock both of these out before the April changes. Currently using Becker and Ninja MCQs. Looking to be more active in this group once REG is done.

Just curious, how much time is everybody putting in for BEC?

[Anonymous]

I feel like I put countless hours since I started studying at the very end of October! My test isn't until 1/21..In the last week I put in 23 hours into Ninja MCQs plus at least 15 hours each chapter in Becker, at least… I am hitting a wall hard, but need to keep going!

[Author]

Replies