[jeff]

FAR Resources:

Free FAR Notes & Audio – https://www.another71.com/cpa-exam-study-plan

FAR 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

FAR Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[icanhazcpa]

OK guys PLEASE help me out with this questions I can't understand it at all.

Compared to the accrual basis of accounting, the cash basis of accounting understates net income by the net decrease during the accounting period of:

AR AP

Yes No

No Yes

No No

Yes Yes

My thinking is that a decrease in AR and an increase in AP will both increase cash flows, and therefore be no for both. The answer is no, yes, and I cannot understand the reason behind the AP being yes. How could a decrease in an expense decrease net income?

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[mjp44]

@icanhazcpa I believe it would be NO for a Decrease in AR b/c cash is being collected and a Yes for decrease in A/P because if A/P is decreasing that means the company is paying their expenses and disbursing cash, therefore decreasing NI.

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[StephAV]

When you have A/R you Dr. A/R Cr. Rev, when you have A/P you Dr. Exp, Cr. A/P. NI = Rev-Exp, therefore to have a decrease in NI you'd increase your Expense or if you record A/P you are decreasing your NI. That is really confusing!!

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[icanhazcpa]

Thank you guys that really helped! I'll try to go back and look at the other questions asked earlier to return the favor!

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[kip_snoodles]

Hey everyone,

My usual study method is to go through just the MC for all sections first in Becker, and then rework the MC questions a second time and the SIMS for the first time. I like to have a better foundation when I start the SIMS questions. I haven't even looked at them yet, but do most of the FAR SIMS question consist mainly of Journal Entries. I ask because there are a lot of JE examples in the book, but so far in my studies I haven't seen as much MC questions relating to Journal Entries as I would have thought.

Also, is Chp. 6 as bad as chapter 5?

Thanks!

[Qlad]

@ tncincy….the question was …

A leased from b on1-1-1 for 9 yrs under sales type lease. the cost of the machine $400000 and estimated life of 15 yrs.

Semi annual installments r due on jan 1 and july 1 @ $ 44000. The PV of payments @12% is $ 505000.

What shud A recognize as depreciation expense at year end?

Answer options

a.44444 b.33667 c.56111 d. 26667

The explanation says that the answer is C as the question does not say if it had a “bargain purchase or transfer of title at the end of the lease”…so $505000 will be divided by 9 yrs (lease period ) and not the life of the asset.

My argument is that the question says it is a “sales-type lease” so it means asset has been sold …and therefore the asset life shud have been considered…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Tncincy]

Ok. I understand that……I went back to my notes and I get the sales type lease, then I stopped at the depreciation, depreciation of capital asset is the way the asset is set up so I assumed it was ownership or written because the life of the asset was give, but the lease term was given too so this is where my confusion came in…..going back to study leases. lol

(well, during review anyway).

It begins with a 75
Been here too long as a cheerleader....ready to pass

[meli083]

I'm on F7 and it's not too bad. But there are soo many formulas. My motto is “memorize now, understanding comes later”.

While it's not a very hard chapter to learn, having to learn all those formulas is brutal. Looks like I'll be making notecards for these.

AUD: 2/28/2013 - 86
FAR: 10/19/2013 - 83
REG: 1/6/2014 - 80
BEC: 2/27/2014 - 81

[OCDisME]

@icanhazcpa Something I use when going from cash basis income to accrual basis income is the following:

Cash Basis Net Income

+ increase in current assets

– decreases in current assets

– increases in current liabilities

+ decreases in current liabilities

Total: Accural Basis Income

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[icanhazcpa]

@OCD Thank you for your help!

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[Qlad]

I have a confusion on pension expense calculation….

if actual return on plan asset and expected return on plan asset is given in the question and have different values…which one do u use and why?…can't find anywhere..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[StephAV]

I would think actual… Why would you use an expected # when you know the actual? Right?

FAR - 7/13 - 72, 11/13- 74, 2/14- 82!!! Best score ever (for me)!!!
BEC - 1/14 - 75!!! Perfect score! First Pass! YAY!!!
AUD - 8/14 - 80!!!
REG - 5/14 - 72, 10/14 - 66, 1/15 - 78 - DONE FOREVER!!!
I did 5 of the UNA and CPAExcel classes to earn units.

[OCDisME]

@ Tanaya Thanks for your input about the Becker Final Review. I couldn't agree more that it seems like a waste of money, and definitely more questions to stress me out more!

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[taxdiva]

I'm feeling really discouraged and unproductive. This is the second time I've rescheduled my FAR exam retake. The first time around I scored a 73… yup, a 73! I actually felt good about the exam, too. I guess I shouldn't trust the “good gut” feeling anymore. Any advice on what to do to pass this beast the second time around?

REG(10/23/12)- Passed. Life happended and lost credit - 18 month expiration)(Retake soon)
FAR - Passed. Used Becker.
AUD - Passed. Used CPAExcel (now Wiley)
BEC- Plan to take October-ish.

Just give me a 75!

[icanhazcpa]

@Qlad if they give you both and they're different, that's when you have to go to the rules and it becomes a component of the gain or loss. You would use the actual for the R in SIR AGE, then amortize the difference as a gain or loss with the corridor approach, along with any actuarial gain or loss.

BEC - 83
FAR - 83
REG - 74, 78
AUD - 76

Becker Self Study

[Author]

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