[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[stoleway]

@willpassby2014

If its the same bank, GAAP requires you to net cash. If it was different bank then the liability will not be netted.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[willpassby2014]

i agree. Here you go…i have my exams tomorrow and i am making silly mistakes

Current liability — An overdraft of a bank account occurs when checks honored by the bank exceed the balance in the account. An overdraft may be offset against other cash accounts with the same bank, but not against cash accounts with other banks. In the latter case, the overdraft is listed as a current liability.

BEC Passed
FAR Passed
AUD Passed
REG Passed

[Anonymous]

This is my 2 cents – when you are setting goals to do as many practice exams – we tend to go too fast because we are trying to get amount of Mcq's done in that day.. That is what was happening to me – i would get stuff wrong and then be really depressed and feel i am doing bad.

When you are in the exam. Read the question slowly. Read all the answers slowly (look for key works like Maybe, Must, should be, will not) – Go back and read the question again to make sure you understood what its asking you its it asking for correct, except for….

Then select your answer and move forward.

Spending that extra few seconds reading the question will go a long way…

[willpassby2014]

Thanks Kenada…i will keep this in mind. I will be at exam during this time tomorrow….today i am not able to concentrate and revise….just blindly looking at random stuff

BEC Passed
FAR Passed
AUD Passed
REG Passed

[HopefulCPA0601]

During year 3, Fleet Co.’s trademark was licensed to Hitch Corp. for royalties of 10% of net sales of the trademarked items. Returns were estimated to be 1% of gross sales. On signing the licensing agreement, Hitch paid Fleet $75,000 as an advance against future royalty earnings. Gross sales of the trademarked items during the year were $600,000. What amount should Fleet report as royalty income for year 3?

A $54,000

B $59,400

C $60,000

D $75,000

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[stoleway]

@HopefulCPA0601

Answer is B

60,000 X .99= 59400

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[HopefulCPA0601]

you got it!

BEC: 65 - 79* - 84 DONE
AUD: 65 - 76 DONE
REG: 63 - 77 DONE
FAR: 65 - 63 - 67 - 69 - 73 - 71 - 83 DONE

Becker Notes & Flashcards, Wiley Test Bank, Ninja MCQ

[UHC2005]

B, the advance has nothing to do with the royalty income for year 3.

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[willpassby2014]

Research expenditures are recognized immediately as expenses under both US GAAP and IFRS. For US GAAP, development costs are also expensed as incurred. However, under IFRS, development costs are capitalized if certain requirements are met including a belief that future economic benefits are probable and that the product being developed is technically and commercially feasible.

17 of 27

Question 17

The Shawshank Corporation spends $400,000 on research costs this year and $300,000 on development costs. The company believes that future economic benefits are probable and the product being developed is technically and commercially feasible. What amount should the company recognized this period as an expense?

A 700,000 under US GAAP and zero under IFRS

B $700,000 under US GAAP and $400,000 under IFRS

C $400,000 under US GAAP and zero under IFRS

D $400,000 under both US GAAP and IFRS

Development cost? what is that ? is research cost diff from development cost

BEC Passed
FAR Passed
AUD Passed
REG Passed

[stoleway]

B

$700,000 under US GAAP and $400,000 under IFRS

Research and Development seems different, but honestly, trying to differentiate them gives me headache. I have memorised this concept to save my brains from this nonsense…lol

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[willpassby2014]

Right answer…under IFRS dev cost is capitalized…yahoo…..some confident for my exam tomorrow

BEC Passed
FAR Passed
AUD Passed
REG Passed

[willpassby2014]

his question has already been answered

According to US GAAP, negative cash balances are separated and reported as liabilities. Therefore, only the positive balance of $120,000 is shown within the assets. Under IFRS, both balances are netted and then reported as assets if the negative balance is part of normal cash management. Putting the two balances together gives a net $106,000 asset to be reported on the balance sheet.

25 of 27

Question 25

The Loomis Corporation has two checking accounts at the end of the year. One has a positive balance of $120,000 and the other has a negative balance of $14,000. The account with the negative balance tends to swing between slightly positive and slightly negative as company officials seek to minimize the amount of assets tied up in cash. On a balance sheet, how much is reported by the company as the cash balance within its assets?

A US GAAP – $120,000 and IFRS – $120,000

B US GAAP – $120,000 and IFRS – $106,000

C US GAAP – $106,000 and IFRS – $120,000

D US GAAP – $106,000 and IFRS – $106,000

OOPS. this is diff from what was discussed previosuly

BEC Passed
FAR Passed
AUD Passed
REG Passed

[UHC2005]

Heading to Prometric now. Will report back in a few hours.

Time to do one thing:

https://www.youtube.com/watch?v=HayjUnLyB3Y

Using Ninja MCQ, NINJA Notes, Audio, Flashcards and BLITZ, and 2014 Wiley Text

FAR - (61,63)
AUD - (68)

Keep Calm and RTMFQ

Accountant, what is best in life? To crush your MCQs, see them driven before you, and hear the lamentation of their SIMS!

[stoleway]

@UHC2005

Good luck!!

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

@UHC2005 – Good Luck!!

[Author]

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