[palal9923]

Do you guys have a formula or something that will help me go from cash basis to accrual and accrual to cash basis?

I have been trying to use Jeff’s “Spear-Bar” / “Crap-I”…but I dont think I understand it, because I am working becker problems and cannot really get them correct using these formulas. The way becker explains it, is also pretty confusing with their “BASE”.. but it seems different for every problem. I can go into more detail if necessary, I was hoping somebody else was having the same problem and understand what I am referring to.

edit: this is in reference to the problems from F2 ( section that includes 88 HW problems)

[See Pee A]

The basic idea is whether or not something happened and how to match it to the correct period. You can either memorize stuff, which for me that only works for simpler topics, or really try to understand it. Your best bet would probably be to find a financial accounting textbook and learn it from there if the review materials aren't enough for you. Unfortunately, many review courses assume you are overall familiar with some topics and they can be too brief for some who aren't just finishing school or even for some who need more assistance.

My best recommendation would be to get a text and go from there if you really want to understand the topic. Of course, you could just memorize it and hope for the best. Your choice. Good luck!

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[Anonymous]

I struggled with this topic at first, but then I just started logically thinking through it instead of trying to memorize a formula. For instance, if A/R goes down then cash goes up b/c you have collected money owed. The fake cash method that is used for the Cash Flow statement is very helpful when going from accrual to cash. I don't know if that method is taught by other review courses besides Yaeger, though.

[Anonymous]

Always think about the journal entries to convert between the two. For example, it say A/R went by $5000 for the year, and it they tell you that Cash collected is $40,000 for the year then what is the sales for the year. Then you would WRITE down the J/E: Debit Cash 40,000

Credit A/R 5,000

Credit Sales ?

It tells you what is the sales for that year it would obviously be $35,000

Same is true for A/P, and any kind of cash/accrual concept. This will help you in the exam.

[Author]

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