[jeff]

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

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

[meseusy]

Can someone please explain this to me? I'm not quite grasping the explanation given with the study material…

“What is the effect when a foreign competitor’s currency becomes weaker compared to the U.S. dollar?”

a) The foreign company will have an advantage in the U.S. market.
b) The foreign company will be disadvantaged in the U.S. market.
c) The fluctuation in the foreign currency’s exchange rate has no effect on the U.S. company’s sales or cost of goods sold.
d) It is better for the U.S. company when the value of the U.S. dollar strengthens.

The answer is a

[Theodore]

@meseusy I understand it in my head but I will try to explain. lol I was just in Mexico a few weeks ago so I'll use this as an example. The the dollar was worth 18-19 pesos when I left. They say that the peso is going to get weaker by like 3 pesos. Meaning that the dollar is now worth 22 pesos or so. We are able to purchase more Mexican products with 1 dollar. This means that Mexican products are cheaper to purchase with US dollars. The US is at an advantage by being able to import more goods at a cheaper price and Mexico is at an advantage by being able to export more goods to the US. BY exporting more goods (because US is willing to purchase more at a cheaper price) Mexico, Foreign Country, is at an advantage in the US market by being able to export more goods. I hope it helps. If I didn't explain it right, please correct me.

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[meseusy]

@Rosy0407, Thank you, that is a great explanation! I also test on 3/6, this is my first exam. Hang in there, you are just about DONE! Congratulations!

[Theodore]

@meseusy Thank you, Good luck!

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[cottonkandi]

@crimsontyde17 In addition to having the formulas and the book in front of me when I study the questions, I also write out the what the problem is asking, sometimes the question gives you too much information and you lose focus as to what the question is actually asking. I also write out the answer and make sure I understood what the question is asking from me. I write out why I answered it wrong and what to look out for. It's a long process- I average about 15-20 questions per hour on B2 and B3 with this method but it helps with my overall understanding of the underlying question.

For example, I kept on missing questions that asked for total manufacturing cost versus cost of goods manufactured. So in my notes/index cards I wrote:

Know the difference between:

Cost of goods manufactured: DM + DL+ OH Applied + Beginning WIP – Ending WIP

Total manufacturing cost: DM + DL+ OH Applied

[Tncincy]

So anybody working pv cash problems? something to nail down? very annoying.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Loraqns]

Hi! Tested today: it was my first try and wanted to get a taste of the exam before all new changes in April. All I want to say is beware: very heavy on calculations, have to know your formulas and those variances!!! Nothing will get you ready for IT (not becker nor ninja) and I considered it my stronger side. Because of so many calculations I was short on time and started to rush through testlet 3 so I would get to memos but when I got to it with 20 mins left on the clock I was so nervous I couldn't even put a sentence together. Hoping for a miracle. Good luck everyone.

REG 8/23/16 NINJA notes/MCQs
AUD TBA next

[Anonymous]

@allergic2mornings Thanks for the tip! I'm trying this now. Fingers crossed!

[cottonkandi]

I feel like I'm wasting my time with Becker B4 lectures. The online instructor is just telling you to highlight a bunch of stuff. Anybody use something else? I'm thinking about using Wiley.

[Tncincy]

Oh Lord, will I ever finish 200 questions per night….so much for being a weenie. After the last post I better tighten up on the formula's too……oh must it be 200? ok panic attack over…back to work. 🙁

It begins with a 75
Been here too long as a cheerleader....ready to pass

[sara]

Hi! I have BEC on Mar 2. I'm using Roger only. I have finished the lectures. I also have the CRAM course which I plan to start in a few days. I'm having trouble with Roger IPQ and I've read those are actually considered easy. Any tips? Should I just keep repeating them? I'm worried because I don't want to simply memorize the questions.

[Theodore]

@allergicmornings i am using becker and mike pretty much highlighted and read the sentences. I found it useful, though, to read it carefully by myself.

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[Anonymous]

Reposting a question @ksc168 asked previously:

Garter Company anticipates buying a $250,000 piece of equipment that will cost $20,000 to install, have a nine-year useful life, and generate $90,000 per year in pre tax cash flows. Assuming a 30 percent tax rate, what is the payback period for this investment in years?
A) 4.50
B) 3.00
C) 3.47
D) 3.75

Is the answer B? (Excludes tax and any depreciation tax shield)
Total Cost = $270,000
Annual Inflow of 90K leads to a 3 year payback period

Or is the answer D? (Considers tax and depreciation tax shield)
Total Cost = $270,000
Depreciation is 30K a year (270K/9yrs)
Tax Shield = (90K-30K=60K); 60K * 0.30 = 18,000 in savings
After tax inflow = 90K-18K = 72K
Annual Inflow of 72K leads to a 3.75 year payback period

[Theodore]

@C Im I think it is D. If you are using Becker, B3 on page 15 states that We use the after-tax inflows and tax shield. Can they throw a question at us that the inflows include the tax shield?

FAR: 66, 76!
REG: 76!
AUD: 72, 9/7/2016
BEC: TBA

Don't Stop When You Are Tired, Stop When You Are Done.

[wng1885]

How are you guys prepping for the written communication portion of the exam? I'm taking the exam on March 5th and was thinking of leaving my self a week of just doing written communication questions. Currently this week I have just been hitting MCQs but do not feel ready at all.

[Author]

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