[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for FAR. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your FAR exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

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

[vans001]

Annual rental payable at the end of each lease year $100,000
^ So since the questions says END OF EACH lease you would not use Annuity in advance, but if the question had asked beginning of the lease then it would be in advance.

In Ordinary Annuity each payment is made end of the month, quarter or year. For Annuity Due each payment is made beginning of the month, quarter or year.

Present/Future value of $ = One Lump Sum Amount
Present/Future value of annuity due or ordinary annuity = Multiple Payments

Hope this helps.

[DeterminedCPAer]

For anyone using Becker, did you feel the second mock exam being harder than the first? The questions on the second mock exam feel harder, longer and that they are trying to confuse you.

[whoaisme]

Anyone who has used Becker and supplemented with ninja mcq's and sims how did you go about this? any strategies are appreciated!

[DeterminedCPAer]

Quick note. Prometric just called to confirm my testing date and time. I asked if I could bring in a solar powered calculator because using the computer version sucks. She said that I can't bring one but I could ask to use one of theirs. It was weird because she said they couldn't offer it to us but that I would have to specifically ask.

See if your prometric centers will allow it.

[setmefree]

@vans001, Thank you, I do know the difference between annuity due and ordinary annuity, but i might had some misunderstanding about the question, the question saids Dec 30 of current year, and the lease make the end of each lease year, wouldnt that be Dec 30th too? so the date of first payment is the Dec 30th?

[DeterminedCPAer]

@setmefree, think of the initial lease signing as year 1. On Dec 30, year 1, you book at the present value. The first lease payment is made at the end of lease year so the first payment would be Dec 30, year 2. This is why you'll use the ordinary annuity (in arrears) factor and not annuity due (advance).

[setmefree]

@DeterminedCPAer, thank you for confirming, that was my assumption. So, can i assume when the question said make annual payment the end of the year would always be ordinary annuity (arrears)?

[Accountingbeans]

Took FAR on Friday. Can confirm that SIMs sucked, I don't think there was a single SIM besides research that I felt confident with. Hoping I did well enough for some solid partial credit though. Only thing keeping my hopes up is that my second MC testlet was significantly more difficult than the first

Newbie
BEC- August 31

[Just_Trying_To_Pass]

Really starting to spin my wheels with Governmental accounting. I feel like I might have a little burnout at this stage so F9 and F10 haven't gone smoothly for me. I don't know if I should keep digging into the material, do a million MCQuestions(which I hate doing when I don't understand), or just move on to my final review and hope it comes to me after taking a little break.

At the end of FAR 10. I got lost When the Governmental-wide financial statements are explained and all of the consolidatations Specifically, with
Business-type activities. I pretty much brainwashed myself with “GRaSPP” = governmental funds. “SE”= proprietary funds, and “PAPI”= fiduciary funds. When it is all being brought together, I am confused at why Internal services the “S” of “SE” is reported in the governmental funds on the governmental wide FInancials. I was thinking because “SE” uses full-accrual accounting that this would not be included with the GRaSPP modified accrual funds.

I am not sure if I should focus more on knowing the in's and outs of each Fund accounting. Or trying to understand the whole governmental financial statements being brought together.

I would really appreciate an input/ advice on how to tackle GOVT

BEC: 70, 83
REG: 8/13/16
FAR:
AUD:

[DeterminedCPAer]

@Just_Trying_To_Pass

I didn't study a lot on the government wide reconciliations either. I did the same and try to absorb as much of the basic Gov as I could about each find and which one to use and why.

And stuff like Agency is only has statement of fiduciary net position, no income or cash flow.

Agency is for non monitoring of funds. Funds with Monitoring should be in special revenue.

If government is not obligated for debt, use agency fund. Otherwise use capital project for the cash from debt issuance and use debt service is needed.

The reason S in SE is included in the governmental funds is because the S fund primarily services the GRaSPP funds so it's included with them. The GRaSPP funds are reconciled to be full accrual on governmental wide statements so there isn't any mix of full accrual and modified accrual. The ENterprise fund is its own separate column next to the GRaSPP + S.

[DeterminedCPAer]

@accountingbeans keep your confidence up. That's really good news that the second testlet was harder. The AICPA will want a certain number of passers so they will have a default curve. Plus remember pretest questions don't count.

[hopingtogetFAR]

Took my test today. Second testlet of MCQs was a little harder than the first, but overall MCQ were not difficult. I felt really confident in the SIMs until the last testlet and the only thing that messed me up was time. Had to pretty much guess on one of them because time. Based on the time I allotted myself, I finished under time for testlet 1. Right at time on the rest except for the last testlet which I explained. I consider myself an efficient test taker and there simply was not enough time allotted for my last testlet. Overall, I feel like I passed or got in the 70s which will drive me crazy.

[WillWorkForCake]

Does the exam get harder the better you do?

[dcpotter_50]

Hi all,

I am taking my exam August 31st. I just started F7 MCQ's on becker, the MCQ process is taking a lot longer than I wanted it to, as next I will need to rewrite my notes and continue the MCQ/SIM process.

Question – should I rely souly on the MCQs to teach me the material? Or should I read the materials first, and when I don't know the answer should I try to solve it using the book?

[andjela]

Hi,

I need some input re question below:

Douglas Co. leased machinery with an economic useful life of six years. For tax purposes, the depreciable life is seven years. The lease is for five years, and Douglas can purchase the machinery at fair market value at the end of the lease. What is the depreciable life of the leased machinery for financial reporting?

A.Zero
B.Five years
C.Six years
D.Seven years

Correct answer is B. Since this is a capital lease that gives the lessee the option to purchase leased machinery, shouldn't it be C, i.e. useful life of machinery? Is it because it's FV purchase and not bargain purchase? Thanks in advance!

[Author]

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