BEC Study Group Q4 2014 - Page 88

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  • #626959
    Star86
    Participant

    Does anyone have a good example or definition of an object-oriented database? I've tried Googling it, but can't seem to locate a description that's in layman's terms. Thanks.

    #626960
    youngh
    Member

    Anyone use Becker to study for this, and completely bomb the 2nd practice exam? That thing was insane, I was averaging high 80s and 90s on the progress tests, got a 76 average on the first practice exam, and then I get hit like a truck with the second one..

    FAR - 87
    AUD - 92
    REG - 77
    BEC - 11/29/14

    #626961
    knotworthy91
    Member

    @youngh

    same exact thing happened to me. There were questions on there that were absurd and didn't even seem relevant to the Becker material. I've been doing well on the progress tests as well, so that's keeping the confidence high. Those seem to replicate the exam experience much more than the final exam does.

    I've only taken one exam so far, but from my experience on that one and from what I've always heard, the average person does much better on the actual exam than the Becker final exams.

    AUD 91
    BEC 81
    FAR 80
    REG 4/20/15

    #626962
    Anonymous
    Inactive

    Can someone help me with this? Thanks.

    Does payback method take salvage value into account in calculating cash flows?

    Here's what my book says and the last sentence in all caps below is getting me confused:

    Fact No. 1: Salvage value is specifically considered as part of payback computations because it contributes to the incoming cash flow when the asset is sold.

    Fact No. 2: Payback and bailout payback do not consider the TVOM or the return after the initial investment is recovered. THE DIFFERENCE BETWEEN THE TWO METHODS IS THAT BAILOUT PAYBACK TAKES SALVAGE VALUE INTO ACCOUNT IN CALCULATING CASH FLOWS.

    #626963
    mtwst113
    Member

    @Amor D – The payback method does NOT take into account future cash flows. I studied Becker and haven't heard of the bailout method.

    BEC | √
    AUD| √
    FAR| Spring 2015

    #626964
    Anonymous
    Inactive

    CPA-04836

    Which of the following statements is true regarding the payback method?

    a.

    It is the time required to recover the investment and earn a profit.

    b.

    It is a measure of how profitable one investment project is compared to another.

    c.

    The salvage value of old equipment is ignored in the event of equipment replacement.

    d.

    It does not consider the time value of money.

    Explanation

    Choice “d” is correct. The payback method determines the number of years that it will take for a company to recoup or be paid back for its investment. The payback method does not consider the time value of money.

    Choice “a” is incorrect. The payback method determines the number of years that it will take for a company to recoup or be paid back for its investment. Although the payback method focuses on liquidity, project cash flows after the initial investment are not considered; thus, profitability is ignored.

    Choice “b” is incorrect. The payback method determines the number of years that it will take for a company to recoup or be paid back for its investment. Although the payback method focuses on liquidity, project cash flows after the initial investment are not considered; thus, profitability is ignored.

    Choice “c” is incorrect. Salvage value is specifically considered as part of payback computations because it contributes to the incoming cash flow when the asset is sold.

    #626965
    mtwst113
    Member

    Yep D is correct..since the payment method doesn't take into account the time value of money, it would not account for future cash flows.

    BEC | √
    AUD| √
    FAR| Spring 2015

    #626966
    Anonymous
    Inactive

    I got it from Becker. It may be because I am still using V1.0. I don't want to switch to V2.0 since I already started the prior version.

    Anyway, I just want to get clarification as to rather or not PBM uses salvage value in payback computations.

    Thanks.

    #626967
    mtwst113
    Member

    PBM does not account for the TVOM or future cash flows, that is why the PBM would not consider Salvage Value (which would be collected at the end of the asset's life)

    BEC | √
    AUD| √
    FAR| Spring 2015

    #626968
    Anonymous
    Inactive

    @mtw

    Thanks for helping me get this straight.

    But the “bailout payback” you said is nowhere found in CPA. LOL.

    Never mind! It's probably from CFE, EA, EK, EKAK, whatever.

    Thanks again.

    #626969
    mtwst113
    Member

    I was saying I haven't heard of the Bailout method. Didn't see it on the exam either.

    BEC | √
    AUD| √
    FAR| Spring 2015

    #626970
    win2bet
    Participant

    I just started studying this a couple days ago after finishing REG and damn is this a slow tedious read, this coso internal control & just simply reading past couple pages of posts in here it looks like I'm in for a battle

    REG 68,87
    BEC 85
    FAR 75
    AUD 64,64, 86!

    #626971
    Future Ninja
    Participant

    @win2betmore i'm with you. I just started B1 and it looks like this is not a very easy subject.

    AUD - 79 (expired) retaking July 28,2016
    FAR - 76 expiring July 31, 2016
    BEC - 85
    REG - 74,74,74,74,59,70,

    #626972
    Future Ninja
    Participant

    did you know that:

    SOX = REQUIRED public companies to have an Audit Committee

    AUD - 79 (expired) retaking July 28,2016
    FAR - 76 expiring July 31, 2016
    BEC - 85
    REG - 74,74,74,74,59,70,

    #626973
    Future Ninja
    Participant

    did you know that:

    SOX = focuses less on strategic operations and more on the financial reporting issues impacted by audit committee's competence, ethical behavior of senior officers and adequacy of Internal Control.

    AUD - 79 (expired) retaking July 28,2016
    FAR - 76 expiring July 31, 2016
    BEC - 85
    REG - 74,74,74,74,59,70,

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