[Roxwella]

Hey Everyone,

I wanted to ask a general question about exam planning. And this is not a question about your exam experience, or what you did on the exam, or what was asked of you on exam day (we don’t want to step over any lines).

My question is this, what TYPES of simulation questions would you spend time using the research function to answer? Certain types of questions seem to be much easier to find answers to in the lit than others .. what do you think?

During my audit studies, I found that certain types of questions (specifically regarding formatting of reports, which are word for word in the literature, or specific wording of reports, which is also word for word in the literature…which I had during my studies for audit). I’m positive that knowing how to do this helped. I applied a week ago for access to the literature, but I guess AICPA is taking its sweet time, and exam day is coming up on Friday. Any tips?

Happy Holidays to all!

[MCLKT]

I don't know if FAR will help you a lot when it comes to authoritative literature on the SIMS. Other than the research question requiring the code.

It will be most helpful to have an understanding of the literature as whole and how it is formatted. Knowing your way around it in general. That way, if you do get a SIM that requires information on a topic you aren't strong in, you can reference the literature. Maybe that's what you should do? Evaluate where your weaknesses are, and know where to find the rules and guidelines in those topic, just in case you get a SIM on your dreaded subject matter? Like, if you struggle with revenue recognition for NFP. Take the time now, to know where that info is in the Literature.

Good LUCK!

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

[Roxwella]

I do like that ;). Appreciate the suggestion!

Gonna go find if there is a place that talks about SCF direct vs indirect .. seriously this is my weakspots of weakspots. I swear I remember going through it in college, it just seems to elude me to no end this time around. Thanks for the good suggestion!

[musicamor]

Utilize the guidance–it will most definitely help in completing the sims.

Do you have any specific questions about SOCF?

Texas CPA - licensed in 2012!!!

[Roxwella]

My issue with SCF is remembering how the increases/decreases of accounts change the indirect/direct methods.. have any memory tips on that?

[musicamor]

The direct method is easier than the indirect method (when you have the information readily available) because the line items on the cash flow come directly from your source documents, i.e., cash receipts from the a/r subledger, disbursements from a/p subledger, etc.

The indirect method uses changes in balances on the balance sheet (mostly) to derive the figures that are populated on the SOCF. Take A/R, for example. When A/R increases, you reflect a negative number on the cash flow because increasing A/R is considered a use of cash. When A/P decreases, you show a negative number on the SOCF because when you're paying down A/P, you're using cash. Does that help?

Texas CPA - licensed in 2012!!!

[Author]

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