[jeff]

Welcome to the Q2 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

[Spartans92]

Mckan, for your qquestion if we look at A. Interest risk it can't really be reduced by diversification. When I see that term it's more about your credit worthiness. For instance, applying for a mortgage people with bad credit have higher interest risk.. I know interest risk is more about the fluctuation but I think it helps when making it more simpler lol B and D inflation and recession those are economic cycle which you can't really control. But labor strikes can be Control such as having good company policies. By process of elimination B and D are common hence can't be the answer. I agree the question is vague sometimes.

BEC- PASS

[Spartans92]

@aa, u would be surprised how much you know come exam day. I have this feeling I passed but as the saying goes if you think you did well, you most likely failed. So I don't really wanna be too positive in case I do fail then it's gonna suck. But overall the exam is not as complicated as Becker makes it. I'll say if u have been getting high 70s to 80s you are pretty set. Though there are a few curveball on the actual exam but it may be a pretest question.. can't wait till next Tuesday. Good luck to you all in july. I hope to see yall in audit and not here next quarter :):)

BEC- PASS

[mckan514w]

Thanks Spartan- your explanation makes perfect sense- I was looking more at it from a trading portfolio standpoint where interest rate risk can be hedged but in context with the other questions I can now see where it would be job market…. Wow this is like eating an elephant. 🙂

Have my fingers crossed for you- if it makes you feel better I walked out of Reg thinking I passed and I did- I'm usually a pretty good judge on how well or unwell I have done (or in this case am doing)…. Hope to see you in AUD too…. its just gonna SUUUUUUUCK if I have to retake BEC AND FAR!!! ha ha ha … back to studying like mad so that won't happen….

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[aatoural]

You know Spartan, there is always for a me two different feelings when I think I passed. Sometimes I am a 100% sure but others is more I think I passed but I cannot give you a 100% assurance. The second one is the scary. However, in multiple ocassions I've gotten out of exams saying I failed!!, but I actually did better than expected. Hopefully BEC is a passing.

I have been having randon missfeelings about my percentages. I usually do 4-5 PE of 24 MCQs each (too mimic BEC testlets timing) and on average I can say I am around 80%-83%, but then I go rework marked questions in specific topics that I had issues before and some of them I get catastrofic results (in the 60s)

Luckily we all be moving on to AUD in July!!

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Spartans92]

@aa, I was on the same boat I had issues with some topics and got lower scores. Just keep hitting those weak areas but work on others as well. I was surprised not to see some of my weak spots on exam day.

I almost burst out in laughter because of Gearty! Reg doesn't seem to be too bad.

BEC- PASS

[aatoural]

COSO reading:

https://www.coso.org/documents/990025P_Executive_Summary_final_may20_e.pdf

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[DMoneyBags]

Good luck to all who just took BEC. I took it on 6/10. I'm not sure how I did. I always feel that way when leaving these exams. My essays were hard.

You can never tell with these tests….

FAR - MAY 2015 PASSED
AUD - NOV 2015 PASSED
BEC - JUNE 2016 PASSED
REG - SEPT 2016

[Crunchtime]

Does anybody know when they will release the 3rd quarter test result schedule?

I have an open ended question but hopefully you guys will be willing to help me. I pulled a 74 last time and I left some points with variances. I understand and memorize the PURE acronym but can't remember any other VOH's or anything else. I am looking for suggestions on what you guys have done to memorize these extra parts.

AUD-77
BEC-70,73,68,74 SH##!!!!!, 80
REG-73,76
FAR -74,82

Ethics here I come!!

[powfood]

@Crunchtime what exactly is the PURE acronym? I have Becker, but I did not use that acronym for overhead variances.

FAR - 83
AUD - 93
REG - 85
BEC - 89

[aatoural]

A corporation is considering purchasing a machine that costs $100,000 and has a $20,000 salvage value. The machine will provide net annual cash inflows of $25,000 per year and has a six-year life. The corporation uses a discount rate of 10%. The discount factor for the present value of a single sum six years in the future is 0.564. The discount factor for the present value of an annuity for six years is 4.355. What is the net present value of the machine?
a.
($2,405)
b.
$8,875
c.
$28,875
d.
$20,155

Correct answer is D. which includes the calculation for the PV of the Salvage value. My question why we consider salvage value if the problem does not tell me if they if they will incurred gain or loss or any type of action for that matter?

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[jr1751]

@aatoural – The way I look at this problem is that there are 2 inflows (PV of 6 yr $25K annuity and PV of salvage value $20k). These two amounts are added together and subtracted from the $100k, which is the cost of the machine. In other words, the salvage value is an extra inflow the machine will generate. You don't need to know if it's a gain or a loss for the purpose of this problem. Hope this helps.

BEC - PASSED

REG - Praying I Passed

AUD - TBD

FAR - TBD

[Crunchtime]

@powfood, PURE, PRICE variance, Usage, Rate, Efficiency, dm, dm, dl, dl, DA, DS, DA, DS. This should ring a bell.

AUD-77
BEC-70,73,68,74 SH##!!!!!, 80
REG-73,76
FAR -74,82

Ethics here I come!!

[cpa007]

An increase in the market supply of beef would result in

a. Decrease in the quantity of beef demanded.
b. Increase in the price of beef.
c. Decrease in the demand for beef.
d. Increase in the quantity of beef demanded.

Explanation Choice “d” is correct. a shift outward (increase) in supply, increases quantity demanded at equilibrium, accompanied by a decline in price. Thus, an increase in the market supply of beef could result in an increase in the quantity of beef demanded.

Can some one please explain why it not increase in QS.

[aatoural]

Thank jr1751

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[jr1751]

@cpa007 – the problem tells you that the supply curve has increased. This means a producer sees a reason to supply more of a product. If supply increases and demand stays the sam, you are going to see an increase in the quantity demanded and a decrease in price. Hope this helps.

BEC - PASSED

REG - Praying I Passed

AUD - TBD

FAR - TBD

[Author]

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