[xibadx]

Ok so there are some which are obvious that an accountant should know such as:

– Degree of Operating Leverage & Degree of Financial Leverage

– Working Capital, Current Ratio, Quick (Acid test) Ratio

BUT, what about the very detailed ones, ARE WE REQUIRED to have the forumlas memorized?

– Cash Conversion Cycle Formula

– Cost of Debt (kdt) and Cost of RE (CAPM method)

… Basically there are some formulas that with a decent amount of common sense, and moderate preparation, we should be fine.. But there are some that we’ll have to stare at for the last few minutes before the test…

Just how detailed of a formula memorization is required?

All passed on first try - Licensed CPA Texas
Studying tip: Study throughout the day (short intervals, no more than 3hrs/day total), take exam later in the day and cram before your exam.

[SonjaBlue]

You are not “REQUIRED” to memorize anything, but you could be tested on any of them. Some people take the risk of not memorizing all of the formulas, but they recognize that there could be questions that show up that would be “easy points” if they could only remember the formula. It's kind of like the risk you take parking in a “no parking” zone. You might get away with it, or you might get a $200 ticket. Think of that $200 ticket like it's the cost to take the exam a second time because you failed the test the first time you took it.

What's your comfort level with that risk?

FAR 02/26/13 78 [05/25/12 67]
AUD 07/07/12 85
REG 05/28/13 80 [08/25/12 72]
BEC 11/26/12 81

[xibadx]

Good analogy, but memorizing complex formulas are not always easy points since the time consumed in memorizing them may have a huge opportunity cost and a simple mistake in writing the formula can make the whole effort useless…

I guess I should reword my question… If you had one hour before your exam starts, would you give the formulas any more of an emphasis than the remainder of the material?

All passed on first try - Licensed CPA Texas
Studying tip: Study throughout the day (short intervals, no more than 3hrs/day total), take exam later in the day and cram before your exam.

[MCLKT]

I would (did) memorize all of the formulas, well before an hour before the exam. Of course, I only scored a 74, so what do I know? I think memorizing formulas are easy points. Don't memorize the incorrect formula, that's silly. Memorize the correct formula, understand what it is used for, and how the components relate to one another.

BEC has so many random questions. I remember during my exam wondering what the hell are they talking about. It's tricky. I walked out of there thinking I bombed and my brain was mush.

Good Luck!

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[MCLKT]

Oh, if you are testing today or tomorrow, yeah… it may not be worth it.

A:[73]97 F:[74]85 R:86 B:[74]82
*NINJA 10 Pt. COMBO & Yaeger*

[SonjaBlue]

I understand your question better now. I tend to focus my final study efforts on sections that are more heavily weighted in the exam. Using the information provided in the first few pages of Becker book, that meant B1 and B3 for me. If I only had an hour left, I would spend a half hour reviewing the COSO principles/elements for internal control and enterprise risk management (B1); but, not the formulas from B1 (risking that ticket). And, I would spend a half hour reviewing my memorization of the B3 formulas. Having said that, this final review is unique to my strengths and weaknesses. I wouldn't do any final review of formulas for B2, but that is NOT because I didn't ned to know them. It's because I am used to using those formulas in a practical work environment. Maybe you already have the COSO's memorized and wouldn't need a final review; but, you are weak on the B2 formulas kind if thing . . .

FAR 02/26/13 78 [05/25/12 67]
AUD 07/07/12 85
REG 05/28/13 80 [08/25/12 72]
BEC 11/26/12 81

[jenuno01]

BEC is way too random to memorize formulas. You really need to understand the calculations and be able to intuitively solve problems.

Class of 2012

[Jstanothercpa]

I memorized or attempted to memorize all of the forumlas for BEC. My rationale was that knowing theory doesn't really help if you get a computation and don't know the formula. But memorizing the equations can help you pick up non computation questions where you can use the formulas to help get the right answer.

That being said, if I only had a couple of hours to cram I would probably just read through the theory/COSO/internal control material. It is hard for me to truly memorize a bunch of stuff in a short amount of time but I can retain enough to reconize an answer or eliminate one or two of the choices. When you have 85% MCQs, you don't necessarily have to be able to regurgitate all of the elements of a topic, you just have to be familar enough with them to pick the right answer or narrow the options down for the ones that don't look familar.

REG - 78
AUD - 80
BEC - 80
FAR - TBD

[Rukus]

I would say you definitely need to know the formulas. Just think about your review MCQs and the formulas that are required to answer those. The exam will be the same. Everyone sees different questions on their test, but in my test experience memorized formulas are tickets to easy points. It really doesn't take a whole lot of effort to memorize them once you have used them several times throughout your review, so do it. The exam WILL test your knowledge of most of the formulas, in some form or fashion.

FAR - 81 (8/31/12)
AUD - 93 (10/19/12)
BEC - 79 (11/27/12)
REG - 92 (2/8/13) DONE! All 1st attempt!

[Author]

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