[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

[NYCaccountant]

What is so difficult about the sims? are they comparable to the Wiley book? I find those to be long.

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

[NYCaccountant]

What is so difficult about the sims? are they comparable to the Wiley book? I find those to be long.

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

[nbad311]

you guys have me all rattled about SOCF now.

If you guys can clarify, is this correct? MCQs on this have been tripping me up since day one but I think I have finally got it down:

if a company is MAKING LOANS or COLLECTING ON THOSE LOANS (basically, in a creditor position) = Investing activities

if the company TAKES OUT A LOAN or MAKES REPAYMENTS ON THIS LOAN (in debtor shoes) = financing activities

REG - 65, 70, 80!
BEC - 35, 62, 79!
AUD - 73, 75!
FAR - 65, 73, 70, 75! DONE.

[nbad311]

you guys have me all rattled about SOCF now.

If you guys can clarify, is this correct? MCQs on this have been tripping me up since day one but I think I have finally got it down:

if a company is MAKING LOANS or COLLECTING ON THOSE LOANS (basically, in a creditor position) = Investing activities

if the company TAKES OUT A LOAN or MAKES REPAYMENTS ON THIS LOAN (in debtor shoes) = financing activities

REG - 65, 70, 80!
BEC - 35, 62, 79!
AUD - 73, 75!
FAR - 65, 73, 70, 75! DONE.

[NYCaccountant]

Making loans – investing – only the principle though, the interest is operating

taking out loans – financing Only the principle payment though, the payment of interest is operating

Do you net out the allowance for uncollectible property taxes against the property tax receivable? Ninja notes says you never net them, but Wiley says that they have to be netted. Thanks in advance.

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

[NYCaccountant]

Making loans – investing – only the principle though, the interest is operating

taking out loans – financing Only the principle payment though, the payment of interest is operating

Do you net out the allowance for uncollectible property taxes against the property tax receivable? Ninja notes says you never net them, but Wiley says that they have to be netted. Thanks in advance.

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

[Anonymous]

NYC – at a conference so please forgive the abbreviated reply:

DR: Property taxes receivable $2,000,000

CR: Property tax revenue $1,980,000

CR: Allowance for uncollectible property taxes $20,000

[Anonymous]

NYC – at a conference so please forgive the abbreviated reply:

DR: Property taxes receivable $2,000,000

CR: Property tax revenue $1,980,000

CR: Allowance for uncollectible property taxes $20,000

[Anonymous]

I always thought you have to net them…as DJN showed above.

Q:

A company that sells computers buys inventory and pays cash of $19,000. It also buys a truck and pays $48,000. It pays $30,000 on a long-term liability and $14,000 in cash dividends. On a statement of cash flows, what should be listed as the cash outflow in connection with investing activities?

A

$48,000

Why is the 30,000 included if it's from a long term liability? Isn't that meant to mean a note payable, which in that case ISN'T a cash outflow? Is that answer correct or am I misunderstanding something?

[Anonymous]

I always thought you have to net them…as DJN showed above.

Q:

A company that sells computers buys inventory and pays cash of $19,000. It also buys a truck and pays $48,000. It pays $30,000 on a long-term liability and $14,000 in cash dividends. On a statement of cash flows, what should be listed as the cash outflow in connection with investing activities?

A

$48,000

Why is the 30,000 included if it's from a long term liability? Isn't that meant to mean a note payable, which in that case ISN'T a cash outflow? Is that answer correct or am I misunderstanding something?

[NYCaccountant]

? @ Dante lol If they paid 30,000 on a loan they owed that's a cash outflow in financing section. If someone paid them 30,000 for a loan they made that's a cash inflow in investing section. The 14,000 in dividends is financing, the 19,000 in inventory is operating, and equipment is investing.

Thanks @ DJN.

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

[NYCaccountant]

? @ Dante lol If they paid 30,000 on a loan they owed that's a cash outflow in financing section. If someone paid them 30,000 for a loan they made that's a cash inflow in investing section. The 14,000 in dividends is financing, the 19,000 in inventory is operating, and equipment is investing.

Thanks @ DJN.

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

[Anonymous]

I think I read it wrong…I read it as if they signed a note for the truck on that date for 30,000 and then paid the rest with the 14,000 in cash. Not that they paid 30,000 on a loan that was outstanding. Ugh. Ok so if that happened then it would have been 14,000 right?

[Anonymous]

I think I read it wrong…I read it as if they signed a note for the truck on that date for 30,000 and then paid the rest with the 14,000 in cash. Not that they paid 30,000 on a loan that was outstanding. Ugh. Ok so if that happened then it would have been 14,000 right?

[NYCaccountant]

Yes, the note is a non cash transaction and should be reported separately. Only the 14,000 would be reported in the investing section.

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

[Author]

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