FAR Study Group October November 2013 - Page 106

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  • November 8, 2013 at 2:21 am #477588
    Anonymous
    Inactive

    Quick Question…

    On the sims… If I am off in my answers by $1 for rounding, would that be viewed as a wrong answer?

    Please let me know

    November 8, 2013 at 2:30 am #477525
    Anonymous
    Inactive

    according to cpaexcel, the answer to this question is gain on sale of plant asset. isnt that supposed to be an investing activity?

    Tag Question

    Which of the following transactions is included in the operating activities section of a cash flow statement prepared using the indirect method?

    A. Gain on sale of plant asset.

    B. Sale of property, plant and equipment.

    C. Payment of cash dividend to the shareholders.

    D. Issuance of common stock to the shareholders.

    November 8, 2013 at 2:30 am #477590
    Anonymous
    Inactive

    according to cpaexcel, the answer to this question is gain on sale of plant asset. isnt that supposed to be an investing activity?

    Tag Question

    Which of the following transactions is included in the operating activities section of a cash flow statement prepared using the indirect method?

    A. Gain on sale of plant asset.

    B. Sale of property, plant and equipment.

    C. Payment of cash dividend to the shareholders.

    D. Issuance of common stock to the shareholders.

    November 8, 2013 at 3:05 am #477527
    Jennifer241
    Member

    @oblio Yes and yes, bad debt expense is treated just a normal expense is. Think of it this way, in the prior year the organization recorded that revenue when they recorded the receivable, so this year since it isn't collectible we are going to record an expense.

    @CesarCPA2012 Most of the time on the calculations simulations, the offer a drop down box for clicking on the answer you want but on calculations where you have to type it in, I would assume it needs to be 100% correct for the computer to grade it correctly. Your guess is as good as mine though.

    @cpa066729 Look at the wording of those answers closely. The sale of PP&E goes into Investing activities, but the GAIN from that sale (Cash – Basis in PP&E) is considered an operating activity.

    100 Cash Sale

    80 Basis

    20 Gain

    So 80 is investing activity, and 20 is operating activity. Make sense?

    AUD - Jan 9,13 Pass
    REG - Aug 30,13 Pass
    BEC - Oct 26,13 Pass
    FAR - Dec 4,13 Pass

    Licensed CPA in the state of Oregon

    November 8, 2013 at 3:05 am #477592
    Jennifer241
    Member

    @oblio Yes and yes, bad debt expense is treated just a normal expense is. Think of it this way, in the prior year the organization recorded that revenue when they recorded the receivable, so this year since it isn't collectible we are going to record an expense.

    @CesarCPA2012 Most of the time on the calculations simulations, the offer a drop down box for clicking on the answer you want but on calculations where you have to type it in, I would assume it needs to be 100% correct for the computer to grade it correctly. Your guess is as good as mine though.

    @cpa066729 Look at the wording of those answers closely. The sale of PP&E goes into Investing activities, but the GAIN from that sale (Cash – Basis in PP&E) is considered an operating activity.

    100 Cash Sale

    80 Basis

    20 Gain

    So 80 is investing activity, and 20 is operating activity. Make sense?

    AUD - Jan 9,13 Pass
    REG - Aug 30,13 Pass
    BEC - Oct 26,13 Pass
    FAR - Dec 4,13 Pass

    Licensed CPA in the state of Oregon

    November 8, 2013 at 7:20 pm #477529
    MattinColorado
    Member

    servant2,

    Thanks for that explanation of installment sales!

    FAR - 11/26/13 - 82
    BEC - 01/10/14 - 89
    AUD - 04/03/14 - 84
    REG - 08/14/14 - 83

    November 8, 2013 at 7:20 pm #477594
    MattinColorado
    Member

    servant2,

    Thanks for that explanation of installment sales!

    FAR - 11/26/13 - 82
    BEC - 01/10/14 - 89
    AUD - 04/03/14 - 84
    REG - 08/14/14 - 83

    November 8, 2013 at 10:40 pm #477531
    oblio
    Member

    Construction in Progress: a current or noncurrent asset?

    November 8, 2013 at 10:40 pm #477596
    oblio
    Member

    Construction in Progress: a current or noncurrent asset?

    November 9, 2013 at 6:54 pm #477533
    Jennifer241
    Member

    @oblio Neither, it is fixed asset. If you have to categorize it into one of those two, I would lean towards non-current.

    AUD - Jan 9,13 Pass
    REG - Aug 30,13 Pass
    BEC - Oct 26,13 Pass
    FAR - Dec 4,13 Pass

    Licensed CPA in the state of Oregon

    November 9, 2013 at 6:54 pm #477598
    Jennifer241
    Member

    @oblio Neither, it is fixed asset. If you have to categorize it into one of those two, I would lean towards non-current.

    AUD - Jan 9,13 Pass
    REG - Aug 30,13 Pass
    BEC - Oct 26,13 Pass
    FAR - Dec 4,13 Pass

    Licensed CPA in the state of Oregon

    November 10, 2013 at 5:14 am #477535
    Study Monk
    Member

    I think construction in progress can be either a current asset or a noncurrent asset depending on turnover the contracts. This is based on my intuition more than anything.

    I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

    "Do 5000 multiple choice questions for each section"

    November 10, 2013 at 5:14 am #477600
    Study Monk
    Member

    I think construction in progress can be either a current asset or a noncurrent asset depending on turnover the contracts. This is based on my intuition more than anything.

    I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

    "Do 5000 multiple choice questions for each section"

    November 10, 2013 at 5:36 am #477537
    Study Monk
    Member

    Susan K when they use the wording revaluation method they are implying that it is company using IFRS. In IFRS they post gains from evaluating goodwill to OCI not on the IS.

    I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

    "Do 5000 multiple choice questions for each section"

    November 10, 2013 at 5:36 am #477602
    Study Monk
    Member

    Susan K when they use the wording revaluation method they are implying that it is company using IFRS. In IFRS they post gains from evaluating goodwill to OCI not on the IS.

    I spoke to an ancient wise man who sent me on a mushroom induced journey through an ancient forest to find the key to passing the CPA exam. A talking spider monkey told me to throw the last of my drinking water in the dirt to find what I was looking for. So I followed his instructions and the following message appeared in the soil:

    "Do 5000 multiple choice questions for each section"

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