[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for FAR. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your FAR exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

[CoachEmUp]

@karanvir06 You're mis-reading the question. The company will receive $50,000 total, with $10,000 received today, and then four installments of $10,000 starting at the end of next year.
The key to the question is that all the services were performed by Macklin and the refund period expired. Therefore they can recognize all $50,000 (think of the matching principle of revenues and expenses).

[mccarta7]

I've answered nearly all the questions for governmental accounting in the Gleim software (about 300) and have found that many seem mostly conceptual or only have light calculations. Is it safe to assume that most governmental accounting questions will be mainly conceptual or is it just my software? I plan on using NINJA MCQ for my final review just to get some more governmental questions, but wanted to know of others using other software felt this same way about the governmental section?

[jwalk]

I am taking Becker CPA review and I will be starting review period monday and hoping to test 7/27. What are thoughts on Becker MCQ in comparison to exam MCQ difficulty? Should I purchase NINJA MCQ??

Good luck everyone!

[Vinti]

@jwalk
What is your study plan? I mean how many bit size lesson are you planning to do in a day? And your study strategy? I started with wiley 2 days back but was not comfortable with that so started with becker today.

[wowwow93]

Hi all,

I'm confused with a question:

In financial statmetns prepared on the income-tax basis, how should the nondeductible portion of expenses such as meal and entertainment be report?

– the answer is “included in the expesne category in the determination of income”

I chose the answer “include in a sperate caetgory in the determination of income”

Becker textbook states that nontaxable expenses are reported as seperate items. Can anyone explain to me why it's included?

[jwalk]

@Vinti So I am thinking Sunday night or Monday morning I will start right back at F1 and go as far through as I can with review and MCQ and review all my flash cards and material & figure out what I'm struggling with as well. Depending on what areas I am falling short and not proficient in I will adjust my schedule. Next Thursday I will take mock exam #1. That way I can gauge if I should schedule for the 27th) or take another week to study. (I haven't officially scheduled but in an area with many test centers nearby). Any thoughts? Questions? Concerns? Advice?

[DeterminedCPAer]

@wowwow93,

I don't know if this helps but in Becker F2, there was one question under OCBOA where it stated what's included in the financial statements prepared on the income-tax basis. The answer is was in the line that all revenue and expenses should be included even though they may be recognized in different reporting periods compared to accrual.

[DeterminedCPAer]

@jwalk,

I'm doing something similar. I am skimming all the pages by chapter and doing all the MCQs for that chapter. I have scheduled 2 days for each chapter and want to do at least 100 questions a day. Maybe 60 for the chapters that have heavier calculations as it takes more time to do them.

Then I'm gonna skim SIMs and take the mock exam. Based on that, go back and review the areas the exam says I'm weak on. Then take mock exam 2.

Sounds like you are doing something similar to me. I think it's a good approach and sounds reasonable. What I try to remember is that this exam is wide as an ocean but only 2 inches deep. Call it hedging or a fools hope but I don't think they will give as detailed questions as Becker does for many MCQs.

[jwalk]

@DeterminedCPAer Awesome. Are you going to purchase any additional MCQ?

There is no way everything can be covered in that much depth, but surely there will be a few in there that will require some depth. I definitely need to go over the SIMS again also. Seems there are some people who are saying the SIMS are way more difficult on the exam than presented on Becker…I wonder?

Finishing gov today and SIMS this weekend! Let the fun begin this morning!

[Vinti]

@jwalk
How much hours are you planning to study in a day or week? I am watching video then notes then MCQs. Is that what you are going to do the same? Please help, actually this is taking me too long time to finish one bit size lesson. Do you have another way of studying please suggest. Thanks in advance.

[MZ123]

Hi! I am taking FAR in a week and a half. I used Becker and Ninja MC. Has anyone taken the new exam that used Becker? If so, how did you feel about it?

[Accountingbeans]

Just for funsies: What are your least favorite/hardest FAR chapters and which are your favorites?

Newbie
BEC- August 31

[Ransita]

Hi everyone! I had a MC question about adjusting JE… Could you help with it?

CPA-00577
Dunne Co. sells equipment service contracts that cover a two-year period. The sales price of each contract is $600. Dunne's past experience is that, of the total dollars spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Dunne sold 1,000 contracts evenly throughout the current year. In its December 31 balance sheet, what amount should Dunne report as deferred service contract revenue?

So the answer says the amount earned in the current year is 600,000*40%*1/2 because the repairs are made evenly (July 1 is the average date), only 1/2 of the 40% repairs will be in the current year. But as far as I can see the 40% is already for the first year, why do we need to use 1/2 and consider July 1?

Thanks!!

===
Update: Oh is that because the SALE of the contract is also evenly spreading throughout the year? So the repairs likely to occur are also approximately half because the sale happens at the later period of the year will have less chance to need repairing than those happens at an earlier time?

[DeterminedCPAer]

@ransita that's corrrct. That's how I assume as well. Always defer 100%, then calculate what you'll recognize by taking 1/2 of sales times the percent incurred in current year. Remaining is deferred for future periods.

[DeterminedCPAer]

@vinti

I already watched all the lectures and took notes/highlights. Now for my review I'm skimming each Becker chapter and doing those MCQs. My goal is 100 a day but I know once I get to future chapters, I'll only be able to do about 66 a day because they are heavier on math.

I'm doing progress tests with 33 MCQs at a time to mimic the number of questions per testlet on the exam.

[Author]

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