[jnm224]

Gearty has mentioned the BASE formula twice now (lecture F2 – matching principle) and has said that Olinto covered it in F1 (either that’s a carryover from an old edition of Becker or I missed it). Can anyone explain to me what this BASE formula he keeps talking about is?

 

 

Using: Becker, Wiley Test Bank, NINJA Notes, NINJA Audio

FAR - 90 (7/5)
REG - 90 (8/31)
BEC - 83 (10/13)
AUD - 97 (11/24)

[Texas27]

Beginning

Additions

Subtractions

Ending

BEC - Feb 2012: 80
AUD - Feb 2012: 84
FAR - Apr 2012: 78
REG - May 2012: 90

Thanks Becker!

[Anonymous]

Example concerning trying to find cost of goods sold..

Beginning Inventory: 500 B

Purchased Inventory: +600 A

Cost of Goods Sold: -??? S

Ending Inventory: 700 E

Cost of Goods Sold would have to be $400 based on the formula.

You can use this equation for a lot of things. Statement of Retained Earnings, Accounts Receivable, etc.

[PistolPete]

You can back into a lot of answers using this formula, it's used in BEC too. I suggest you be familiar with it.

FAR - 68, 79
AUD - 82
REG - 71, 71, 80
BEC - 76

CMA
Part 1: October 2013
Part 2: January 2014

[jnm224]

Can someone show me an example for accounts receivable?

Using: Becker, Wiley Test Bank, NINJA Notes, NINJA Audio

FAR - 90 (7/5)
REG - 90 (8/31)
BEC - 83 (10/13)
AUD - 97 (11/24)

[ICanHasCPA]

Personally for many of the things they use it for I prefer t-accounts. It's easier for me to remember debits and credits then additions and subtractions.

[Anonymous]

^ Agreed

jnm224, an example of A/R is…

(B) Beginning A/R

(A) +Credit Sales

(S) -Cash Collected

(E) Ending A/R

Also, you could put in other items like

+Credit Sales Previously Written Off

– Cash collected from previously written off sale

But just like ICanHasCPA, the T-Account method worked out far better for me..

[yeedle]

You should sign up for updates for the becker course because they do catch some mistakes (including the one you mentioned)

here is a link to the FAR lecture and textbook corrections (the first page talks about the BASE formula)

here is a link to the general FAR 2012 updates

Created with Compare Ninja

[kmwgrace]

Yeedle thanks for those links, I didn't know about the updates!

~ Kate... MTX!
CPA exam on hold while I homeschool my 6 year old!

[jenuno01]

I use Becker and the BASE formula means absolutely NOTHING to me. Okay, so they tell you to take the Beg amount plus Addition, Subtractions, and you get an End amount… Okay sweet!! Wait, so what amounts do I use!? See…it doesn't mean sh**!, please people, disregard this stupid formula and use T-Accounts and JE's to figure out the answers in FAR. KNOW the how the accounts are related in the Financials, KNOW your debits and credits and you should be able to figure virtually any problem out.

Class of 2012

[Author]

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