[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

[Anonymous]

@NYCaccountant, I would *hope* the drop-down menus for the J/E sims wouldn't give two options like that were you could end up with the same right results but using different options. Did you get your example from a sim that you did or is your example one that you wrote out on your own?

[NYCaccountant]

@ DJN I made it up, but it's the same result both ways. Which one is correct? Because I know for sure some people use the allowance and some people just write it off against the asset. I had asked a similar question in regards to capital leases. Some people record the lease as gross receivable, while others net the lease receivable out of the gross lease receivable. You end up with the same result, but obviously two different ways to approach it.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

@ DJN I made it up, but it's the same result both ways. Which one is correct? Because I know for sure some people use the allowance and some people just write it off against the asset. I had asked a similar question in regards to capital leases. Some people record the lease as gross receivable, while others net the lease receivable out of the gross lease receivable. You end up with the same result, but obviously two different ways to approach it.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Anonymous]

@NYC, I totally see what you're saying. The way to answer though will have to be dictated by the options they give you. Not a very satisfactory answer, I know…

[Anonymous]

@NYC, I totally see what you're saying. The way to answer though will have to be dictated by the options they give you. Not a very satisfactory answer, I know…

[jeff]

Free Governmental Accounting BLITZ: https://www.another71.com/ninja-blitz/

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

[jeff]

Free Governmental Accounting BLITZ: https://www.another71.com/ninja-blitz/

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

[Anonymous]

I've really procrastinated! I passed BEC back in May 2012, it expires January 31, 2013 🙁 I have yet to pass any other section. Hopefully sitting for FAR in October…I'm using Becker, but haven't been to the classes, and I have a friends old Gleim book. Any suggestions?

[Anonymous]

I've really procrastinated! I passed BEC back in May 2012, it expires January 31, 2013 🙁 I have yet to pass any other section. Hopefully sitting for FAR in October…I'm using Becker, but haven't been to the classes, and I have a friends old Gleim book. Any suggestions?

[Anonymous]

Hey guys! Any help here? Seemingly very basic question that maybe I'm thinking too much into but I thought I'd ask anyway.

On December 30, 2009, Future, Inc paid 2,000,000 for land. At December 31, 2010, the current value of the land was $2,200,000. In Jan 2011, the land was sold for $2,250,000. Ignoring income taxes, by what amount should stockholders' equity be increased for 2010 and 2011 as a result of the above facts in current value financial statements?

Answer: 2010: $200,000; 2011: $50,000

My question: Does “current value financial statements” have any relevance? Is this just terminology to throw me off?

Also, is the $200,000 holding gain in OCI removed in 2011 to the income statement and then the additional $50,000 being recognized in the income statement? And so…the actual increase in 2011 in SE is still only $50,000 because last year OCI already had the $200,000 there already?

[Anonymous]

Hey guys! Any help here? Seemingly very basic question that maybe I'm thinking too much into but I thought I'd ask anyway.

On December 30, 2009, Future, Inc paid 2,000,000 for land. At December 31, 2010, the current value of the land was $2,200,000. In Jan 2011, the land was sold for $2,250,000. Ignoring income taxes, by what amount should stockholders' equity be increased for 2010 and 2011 as a result of the above facts in current value financial statements?

Answer: 2010: $200,000; 2011: $50,000

My question: Does “current value financial statements” have any relevance? Is this just terminology to throw me off?

Also, is the $200,000 holding gain in OCI removed in 2011 to the income statement and then the additional $50,000 being recognized in the income statement? And so…the actual increase in 2011 in SE is still only $50,000 because last year OCI already had the $200,000 there already?

[ZSRizvi]

The Wiley Test Bank won't allow me to copy and paste so I'll just paraphrase.

On August 1st, the government issued a purchase order for two vehicles to be delivered per month starting October 15. 12 vehicles were delivered and payments of $264,000 were made upon delivery. What should be the balances you see on the year end balance sheet?

The answer is:

Dr. Fund Balance $132,000

Cr. Reserve for Encumbrances $132,000

I understand that the “reserve for encumbrances” would have a balance at year end if all the purchase orders weren't fulfilled. But the debit to fund balance is confusing me as well as the “132,000.” Where did that number come from?

If vehicles were order two per month, then by December, only 10 should have been made. Perhaps I'm just tired but this problem has me baffled.

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[ZSRizvi]

The Wiley Test Bank won't allow me to copy and paste so I'll just paraphrase.

On August 1st, the government issued a purchase order for two vehicles to be delivered per month starting October 15. 12 vehicles were delivered and payments of $264,000 were made upon delivery. What should be the balances you see on the year end balance sheet?

The answer is:

Dr. Fund Balance $132,000

Cr. Reserve for Encumbrances $132,000

I understand that the “reserve for encumbrances” would have a balance at year end if all the purchase orders weren't fulfilled. But the debit to fund balance is confusing me as well as the “132,000.” Where did that number come from?

If vehicles were order two per month, then by December, only 10 should have been made. Perhaps I'm just tired but this problem has me baffled.

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[ZSRizvi]

Another question about Wiley terminology.

Becker only mentions the Stmt of Fin. Postion, Stmt of Activities, Stmt of Cash Flows, and Stmt of Functional Expenses as the statements that NFPs require. It also states that the Stmt of Activities shows the net changes in the unrestricted, temp rest., and perm. rest. accounts.

But then I came across a question in the Wiley Bank and they're using different names so I'm getting confused:

“The statement of changes in net assets reports the changes in the hospital’s unrestricted, temporarily restricted, and permanently restricted net assets for a time period. The statement of operations discloses only the changes in unrestricted net assets for a time period, while the balance sheet discloses the amounts of unrestricted, temporarily restricted, and permanently restricted net assets as of a specific date. Therefore, neither the balance sheet nor the statement of operations discloses the changes in unrestricted, temporarily restricted, and permanently restricted net assets for a time period.”

Isn't the statement of operations equivalent to the statement of activities? And why the different terminology?

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[ZSRizvi]

Another question about Wiley terminology.

Becker only mentions the Stmt of Fin. Postion, Stmt of Activities, Stmt of Cash Flows, and Stmt of Functional Expenses as the statements that NFPs require. It also states that the Stmt of Activities shows the net changes in the unrestricted, temp rest., and perm. rest. accounts.

But then I came across a question in the Wiley Bank and they're using different names so I'm getting confused:

“The statement of changes in net assets reports the changes in the hospital’s unrestricted, temporarily restricted, and permanently restricted net assets for a time period. The statement of operations discloses only the changes in unrestricted net assets for a time period, while the balance sheet discloses the amounts of unrestricted, temporarily restricted, and permanently restricted net assets as of a specific date. Therefore, neither the balance sheet nor the statement of operations discloses the changes in unrestricted, temporarily restricted, and permanently restricted net assets for a time period.”

Isn't the statement of operations equivalent to the statement of activities? And why the different terminology?

BEC (July 2013)
FAR (OCT 2013)
REG (NOV 2013)
AUD (JAN 2014)

The CPA Exam is an opponent that not even the Fellowship of the Ring would want to come across.

I have a long...long...journey ahead of me.

[Author]

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