[jeff]

Welcome to the Q3 2016 CPA Exam Study Group for BEC.

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

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[thelatebloomer]

Which of the following did not contribute to the decline in the demand for the dollar in the period 2002–2004?

A.
The large U.S. current account deficit
B.
Relatively high inflation rates in the U.S. compared to major trading partners during that period
C.
Relatively higher growth rates in the United States compared to those in Europe and Japan
D.
Strong foreign demand for U.S. government securities, stock and real assets during the period

Answer is D, it makes sense but I don’t understand how a high growth rate in the US contribute to a decline in demand for the dollar?

High growth rate will lead to higher inflation which leads to lower demand for the dollar due to increasing demand for cheaper foreign goods.

BEC: 88 (expired)
REG: 77 (expired)
FAR: October
AUD: TBD

Wiley CPAExcel + Ninja MCQ + Ninja Audio + Ninja Notes

[jad11]

Is there a difference between substitution effect the same thing as Changes in price of related goods (substitutes and complements)? If so, is it always a shift in the demand curve?

Those with Becker books, I am looking at pages 28 and 29 of chapter 5. I am confused as to why substitution effect on page 28 is not under factors that shift the demand curve on page 29. It seems to me that they are saying substitution effect is just a movement along demand curve.

[Anonymous]

say you're looking at coke. the price goes down. the quantity demanded goes up (not a shift, just a movement on the demand curve) because people will be substituting it for pepsi. that's the substitution effect.

now, say you're looking at pepsi, and the price of coke has gone down. the demand curve shifts to the left because people will be demanding less pepsi, even though it's the same price, because they're buying coke instead.

[Anonymous]

i'm having trouble figuring out the cost of the C/S. the explanation says to use the cost of retained earnings but i don't understand it

Williams, Inc., is interested in measuring its overall cost of capital and has gathered the following data. Under the terms described as follows, the company can sell unlimited amounts of all instruments.

Williams can raise cash by selling $1,000, 8%, 20-year bonds with annual interest payments. In selling the issue, an average premium of $30 per bond would be received, and the firm must pay flotation costs of $30 per bond. The after-tax cost of funds is estimated to be 4.8%.
Williams can sell 8% preferred stock at par value, $105 per share. The cost of issuing and selling the preferred stock is expected to be $5 per share.
Williams' common stock is currently selling for $100 per share. The firm expects to pay cash dividends of $7 per share next year, and the dividends are expected to remain constant. The stock will have to be underpriced by $3 per share, and flotation costs are expected to amount to $5 per share.
Williams expects to have available $100,000 of retained earnings in the coming year; once these retained earnings are exhausted, the firm will use new common stock as the form of common stock equity financing.
Williams' preferred capital structure is long-term debt, 30%; preferred stock, 20%; and common stock, 50%.
The firm's weighted average cost of capital would be:

A.
4.8%.

B.
6.6%.

Incorrect C.
6.8%.

D.
7.3%.

[Anonymous]

Dr Cash – I'm coming up with 6.92% calculated as follows:

Debt (given) .048 x .3 = .0144

PS .084 X .2 = .0168 * 8.4/100

CS .076 X .5 = .038 * 7/(100-5-3)

Total .0692

[MoreCoffeePlease]

Alright, I'm a bit confused on this NINJA MCQ. I had guessed B but the answer doesn't take the interest on the borrowed funds into account.

Morton Company needs to pay a supplier's invoice of $50,000 and wants to take a cash discount of 2/10, net 40. The firm can borrow the money for 30 days at 12% per annum plus a 10% compensating balance. The amount Morton Company must borrow to pay the supplier within the discount period and cover the compensating balance is:

A. $55,000.

B. $55,056.

C. $55,556.

CORRECT ANSWER: D. $54,444.

The total amount of the loan must be the amount due the supplier less the 2% discount plus the compensating balance of 10% of the total loan, or:
$50,000(1.00 – 0.02) + 0.10(Loan) = Loan
$49,000 + 0.10X = X
$49,000 = X – 0.10X
$49,000 = 0.90X
$54,444 = X

AUD - 80
BEC - NINJA in Training
FAR - 87
REG - NINJA in Training

Halfway there; All passes on the first try so far. Hoping to complete by November 2016

FAR - 87; May 2016
AUD - Anxiously waiting, July 2016
BEC - ?, August 2016
REG - TBD

[Anonymous]

Here's a link to Roger CPA youtube videos explaining cost accounting, variance analysis:

[Anonymous]

@coffee – I calculate the answer slightly different from Ninja, but it I think it gets me there correctly as well.

Need 49,000 to the pay the vender x 1.1 (compensating balance) = 53,900

The interest on 53,900 is 30/360 x .12 = 539

53,900 + 539 = 54,439 approx 54,444

Is my logic right??

[MoreCoffeePlease]

@Bond I can understand the thought process in the way you calculate it. Makes more sense than the Ninja explanation, since I don't see where interest ever comes into play there.

AUD - 80
BEC - NINJA in Training
FAR - 87
REG - NINJA in Training

Halfway there; All passes on the first try so far. Hoping to complete by November 2016

FAR - 87; May 2016
AUD - Anxiously waiting, July 2016
BEC - ?, August 2016
REG - TBD

[Sticky Nicky]

Three more days until BEC! This is my first sit for any section. I've been studying for like 3 weeks. Put in over 100+ hours. I'm crankin out Roger mcqs and Ninja Mcqs. Sometimes I hit cpareviewfree MCQs to get some fresh material. My trending is 77% but my average is like a 65% probably because my first time through I was doing really poor. Im also 75% through adaptive phase. Some questions I will not get write no matter how many times I try I've just accepted this fact. Last ninja practice exam I got an 88. Roger practice exams I've been in the low to mid 80s range. Now when I do 30 question testlets on Ninja im getting at least a 79. Roger im high 80s low 90s. Hope im not just memorizing answers. Last time on roger I did a 50 questions testlet and only got 4 wrong. Do u think I'll pass? Stressin! Also how are these questions compared to actual? I know Ninja is harder but are they kind of the same format with diff numbers? or are they totally different?

AUD - 87
BEC - 85
FAR - 88
REG - 80

 

 

[Anonymous]

This is my 5th time for BEC and I am still confused with various IT responsibilities. I am feeling miserable again with BEC. Please help.

So whose responsibilities are a, c, and d? Thanks guys!

In a large multinational organization, which of the following job responsibilities should be assigned to the network administrator?
a.
Installing operating system upgrades.
b.
Managing remote access.
c.
Reviewing security policy.
d.
Developing application programs.

Explanation

Choice “b” is correct. In a large multinational organization (or even a medium sized national organization), managing remote access would be the responsibility of a network administrator. The question used the qualifiers “large” and “multinational” to distinguish this organization from that of a small organization, where many different job functions might be combined in a single individual. In a large organization, a network administrator would not perform any of these other functions (even assuming that the network administrator had the skillset to perform them). IT jobs often require a very specific skillset.

Choice “d” is incorrect. A network administrator would not develop application programs.

Choice “c” is incorrect. A network administrator would not review security policy.

Choice “a” is incorrect. A network administrator would not install operating system upgrades. Few network administrators would have the knowledge and/or training to install operating system upgrades other than possibly simple PC desktop operating systems.

[iamonloose]

a. System programmer
b. Network administrator
c. security administrator? maybe with the help of manager
d. Application programmer/software developer

[Anonymous]

a. Desktop support/help desk IT person
c. Management would be responsible for identifying, reviewing, implementing controls, policies/procedures
d. Developer/programmer

[iamonloose]

Ill be taking BEC on September 10, when will I receive my score? since the cutoff will be September 10.

[csvirk]

Took BEC yesterday. Overall it was an “ok” experience. First testlet was medium, 2nd testlet was hard with 5 questions flagged, 3rd testlet was brutal around 8 or 9 flagged. Writing Portion, Well I BS in all three of them and threw random key words in there. Can't really describe my overall experience. Walked out and was happy i was done with this brutal exam. Definitely more COSO and IT. Some questions were word to word from NINJA. There were also some question which were from left field. Days until result day are going to brutal and full of anxiety.

AUD - 80
BEC - 86
FAR - 77
REG - 84

Hardwork will always pay off!

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Author]

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