[jeff]

FAR Study Group Links and Resources:

1. NINJA Monthly – $67 FAR Course
2. Free FAR Notes
3. FAR Course Comparison
4. How to Pass FAR (with NINJA)
5. How to Pass FAR (in 20 Days)
6. How to Pass FAR (after Failing)

See Also:

• FAR Study Group
• AUD Study Group
• REG Study Group
• BEC Study Group

[wmclafi]

Hi – I’m studying for FAR using CPAexcel. I’ve passed Reg and Aud and have to retake BEC :(.

I tried to schedule FAR in Texas during Q1 2019 but surprisingly all the locations in TX have the same exact availability. Is that a coincidence where all the locations in the state have only Feb 1st available ? Or they haven’t yet opened all the slot? I’m just surprised how all the locations have the same open slots in feb (feb1) and nothing in March!

[Dev12]

Starting with FAR today, using Beckers. Would like to test on Feb 28th. Waiting for AUD results to be out on Dec 19th. I hope I passed. *Fingers crossed*

[April94]

Hey guys! Good luck to everyone studying for FAR. I found out today I failed FAR (72…UGH!) so I'll be trying again in February.

[sashapalekha]

Hello everyone. I’m planning to sit last week of February.

[JulieK]

Hi Everyone,

I'm using Ninja this time around because I need to study more efficiently. FAR has been the hardest section for me so I am going to tackle it first, pass it, and get it out of the way. Planning to sit at the end of January after I receive my NTS. Then I'm planning to sit for REG at the beginning of April. Not working full time, so I should have plenty of hours available – just need to buckle down.

[yicao74]

Can some one tell me why the “Note payable 30,000 increase” does not add back to the Net income? I got $377,000

Karr, Inc., reported net income of $300,000 for 20X1. Changes occurred in several balance sheet accounts as follows:

Equipment $25,000 increase

Accumulated depreciation 40,000 increase

Note payable 30,000 increase

Additional Information

During 20X1, Karr sold equipment costing $25,000, with accumulated depreciation of $12,000, for a gain of $5,000.

In December 20X1, Karr purchased equipment costing $50,000 with $20,000 cash and a 12% note payable of $30,000.

Depreciation expense for the year was $52,000.

In Karr's 20X1 statement of cash flows, net cash provided by operating activities should be:

A. $340,000.

B. $347,000.

C. $352,000.

D. $357,000.

BEC 10/03/15 75
FAR 01/04/16

[April94]

The question is asking for net cash provided by operating activities. “Note payable 30,000 increase” would increase cash inflow from financing activities. Also, you only add items from operating activities to net income. You do not add items from investing or financing activities to net income.

[SeanW]

If I understand what you're asking correctly, then the journal entry to purchase the piece of equipment in December would have been:

Db: Equipment $50,000
Cr: Cash $20,000
Cr: Notes Payable $30,000

The lender would have paid the equipment seller directly (most likely) so it would not have touched your cash account. The Note Payable would have increased your Long-Term Liabilities (and short term for the portion due this year); but not income. If any interest expense was paid during the year, it would be applied to income. I hope I understand your question correctly. Good luck.

BEC – 89
REG – 89
AUD – 87

[yicao74]

Thank you guys. Merry Christmas

BEC 10/03/15 75
FAR 01/04/16

[LL]

I failed FAR in Q4 because of all the journal entries. So I really need some help with preparing journal entries. What are the journal entries you think I should know for the test? I know its better to understand them than memorize them but sometimes its just so hard to come up with the right journal entry. Is there any good ways to understand those journal entries? I am planning to take FAR again in late Jan or early Feb. Thank you!

[utpal]

I am wondering if anyone can help me. I failed FAR twice with 37 each time. I have been out of school since 10 years. Even then, my major was MBA with Accounting Specialization. I am currently using Gleim, but I am finding the question too tough. I also feel that because I have been out of school so long, I no longer have the base understanding of the material. No matter which review course I take, they all cannot replace detailed learning of the material.
So, does anyone have recommendations on what I can do to increase my competency in FAR and ultimately my score. I have passed BEC, REG, and AUD at least once which makes me feel that I am competent to be a CPA.
Should I go back to school and attend classes for Intro, Intermediate, and Advance Financial Accounting or should I just buy the books and study them? Please let me know. Your suggestions will be greatly appreciated.
Thanks.
Utpal

[meantroll77]

Utpal,

I don't think you need to go back to school. If you have already passed other sections of the exam then you have the knowledge. I used Gleim also for FAR but like you said the questions are too tough. I needed something that broke down the topics so I purchased Wiley and finally passed FAR last month. I suggest studying with a different test bank.

[Typical]

Hey guys, just thought I would reach out with my own experience with FAR. I passed FAR December 19th on my first try! I was super happy that I passed being that now all I have left is REG. Anyway, I had quite the journey with FAR, I originally was scd. to take it at the end of October when I was hit by a car as I was crossing the street one night. Was really scary but thankfully I came out of it okay. So obviously that delayed my test and I ended up taking it on December 8th. I think the most important thing for me was to look over the mock exams ( I used Becker) and I would look at where I was weak and I would go through the lecture again and retry the multiple choice in that section. Another point to be made is that I consistently scored in the 60s on the mock exams and ended up with a 78 on the final exam so there is definitely a bump in score between the two in my opinion. If I can do it then anyone can. Just do not fool yourself and always study when you can. If you put in the time, the results will come.

Goodluck everyone!

[tbizzle]

@LL It's difficult to determine what will be on the test. Another NINJA recommend writing down all of the journal entries in notes to prepare. I have been keeping a separate notebook solely for journal entries and find it very helpful!

[Anonymous]

Can someone take a look at this question and tell me what the explanation is really saying? I answered correctly and understand the concept of conservatism, but was completely unaware that it is no longer a thing.

What is the underlying concept governing the generally accepted accounting principles pertaining to recording gain contingencies?

Correct A.
Conservatism

B.
Relevance

C.
Consistency

D.
Reliability

Conservatism is gone now and in the future, but it was still the basis for this rule when the rule was decided upon, and the rule is still in effect. Future rules will not be based on conservatism, but the past rules were, and many are still in effect (e.g., lower of cost or market). A change in a concepts statement (Statement of Financial Accounting Concepts) does not change the rule, and does not change the basis for it.

I'm tired of operating in fear and mediocrity. It's time to try. It's time to do. It's time to go.

[Author]

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