[jeff]

Welcome to the Q2 2017 CPA Exam Study Group for FAR. 🙂

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

[mtaylo24]

Definitely recommend Gleim. The sims are on point with plenty of DRS, the MCQs are tough. The MCQs alone will have your ready for sims due to the length.

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[HoldMyBeerCPA]

Just took the NINJA practice exam. Of course, I had a sim on notes receivable, and of course, I got wrecked by it. Couple of odd notes. I finished the exam in 3 hours. Mind you this practice exam has 90 MCQs and 7 sims. I'm taking the fact that I finished so quickly with a grain of salt. I ended up getting an 81% on the practice exam. Not going to let it get me too over-confident though as I know this exam can be a brutal thing.

T-Minus 36 hours till the exam.

[Cruzer]

In the CPA exam blueprints it mentions the examiners could test on preparing JE's for hedging transactions and derivative financial instruments (swaps, options and forwards). The study material definitely does not emphasize this much as all. I think you would call yourself unlucky if you got this on the exam, just saying.

[HoldMyBeerCPA]

In the preparation of the statement of activities for a nongovernmental not-for-profit entity, all expenses are reported as decreases in which of the following net asset classes?

A. Total net assets

B. Unrestricted net assets

C. Temporarily restricted net assets

D. Permanently restricted net assets

I answered C for this one, thinking that the net effect of an expense is a decrease in cash and a decrease in temp restricted assets from a contribution.

This question threw me off a bit because it assumes that no temp restricted assets were incurred prior to recognizing the expense. My question is, is it safe to assume that if there's no temp restricted assets, all expenses reduce unrestricted assets?

[Soon2beCPA]

Does anyone know if the NINJA test bank has DRS simulations? I've been working on FAR SIMs but haven't come across any DRS ones…I was wanting to practice a few before test day!

BEC - 11/2015 - 82
FAR - 10/1/2016
AUD - 6/4/2016 - 80
REG - 12/10/2016

[Anthony]

I'm pretty much sure Ninja doesn't have any. Try the official AICPA practice exam, they have 1 DRS that you can work on.

[aatoural]

Bennett Corporation engages in three leaseback transactions as a seller/lessee:

Sale of 10 trucks with a remaining useful life of 8 years. The trucks have a book value of $285,000 and are sold for fair value of $450,000. The 2-year lease qualifies as an operating lease, with monthly rental payments of $8,000 and a present value of $147,000. What is the rental expense for years 1 and 2?

Anybody wants to give it a try? Maybe I will understand it that way.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[HoldMyBeerCPA]

Based on a physical inventory taken on December 31, 20X1, Chewy Co. determined its chocolate inventory on a FIFO basis at $26,000 with a replacement cost of $20,000. Chewy estimated that, after further processing costs of $12,000, the chocolate could be sold as finished candy bars for $40,000. Chewy's normal profit margin is 10% of sales. Under the lower of cost or market rule, what amount should Chewy report as chocolate inventory on its December 31, 20X1, balance sheet?

A. $28,000

B. $26,000 – Correct

C. $24,000 – My answer. Incorrect.

D. $20,000

I understand why I was wrong, my question really comes down to wording on this exam. I mean clearly this question says that LCM, not LCNRV is being used here. Is this just something I'm going to have to chalk up as ignore what the question is asking and say what is the updated standard?

I really wouldn't want to lose points tomorrow based on nuances in wording and applicable updated standards.

Thanks guys!

[mtaylo24]

It would be 24,000 If it was LIFO, but its FIFO

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[HoldMyBeerCPA]

Thanks mtaylo.

I understand one of the ASUs changed LCM to be applicable to only LIFO and Retail, but there's just been come inconsistencies in the MCQs I've been doing I don't know, I'm just a bit irritated that I essentially would have to guess as what update is applicable to a question.

Here's another example. A question with a hypothetical date of December 31, 2011. Clearly, ASU 2015-03 says that Deferred Income Taxes are noncurrent assets, but here it's included in current assets? Nuances like this are just infuriating because I understand the concept but could get the question wrong due to word-play.

Bake Co.'s trial balance included the following at December 31, 20X1:

Accounts payable $ 80,000
Bonds payable, due 20X2 300,000
Discount on bonds payable 15,000
Deferred income tax liability 25,000

The deferred income tax liability is not related to an asset for financial accounting purposes and is expected to reverse in 20X2. What amount should be included in the current liability section of Bake's December 31, 20X1, balance sheet (statement of financial position)?

A. $365,000 – My answer. Incorrect.

B. $390,000

C. $395,000 – Correct. Answer

D. $420,000

[mtaylo24]

^^^Is that Ninja? I thought they changed that one?

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[HoldMyBeerCPA]

It is. I did some research and saw another post about it. I suppose it's in the works of being updated. I just hope that come tomorrow, there will be no issues like this.

[mtaylo24]

@aatoural, Can you let me know what the answer is without the support lol?

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[HoldMyBeerCPA]

Welp, I think I'm done with MCQs. I may just take the rest of the night off besides skimming notes in some weak areas.

Here's the final tally (up to this point) on the MCQs I did via NINJA.

I managed to bump up Gov't just a bit, but I am at peace with where I'm at there and with NFP accounting. Sales-type leases, sale-leasebacks, and receivables are areas I'll just have to hope come to me between now and tomorrow afternoon. Those areas just aren't stick at all.

I also did 338 MCQs with the Roger test bank. Got 282 correct out of those.

So my trending score with Ninja and my average score with Roger are just about identical.

Not sure what I should do for the rest of the night, however, it feels so surreal.

[Anonymous]

Hi!

Wanted to give out a little advice… I took all 4 parts and only saw 2-3 multiple choice questions from my Roger study material and I think 1 sim. My point is that you have to spend time learning the material and not mindlessly answering practice questions. If you just memorize practice questions, it will not help you pass. The only way to get through the exams is to actually understand the concepts. I was able to pass all 4 exams over a 8 month studying time while working full-time as a corporate accountant. By the time I took REG and AUD, I mostly just focused on actually learning the material. Also, another tip is that you have to actually spend the money to get a good study course. And, then actually stick to the entire course and don't short-cut it especially if you struggled in your core accounting classes in school.

FAR – 83
BEC – 83
REG – 84
AUD – 92

[Author]

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