[jeff]

Welcome to the Q4 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

[Recked]

My review course did not harp on the ratios, but did go over the main 4-6 ratios.
It would be helpful to know those, but most likely you won't see much of it on the test.
The MCQ's are so random you never know. Current, acid, A/R turnovers, COGS turnovers, etc.

[PNS2CLT]

I wouldn't stress over ratios — I question the likelihood they'll be on the test. Like partnerships, they're still in the FAR blueprint, but the AICPA has made it clear one of the goals of the “new” examination is to reduce redundancy, and ratios are tested heavily on BEC. This is just a somewhat educated guess, but I'm doubtful ratios will be regularly tested on FAR going forward.

[Anonymous]

This might be a dumb question, but why would Dividends in arrears not be a currently liability at the end of the year?

[Recked]

I believe they are not a liability until declared.

[Andria – Another71]

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[Anonymous]

I guess I don't really understand what the heck a dividend in arrears is. My understand was that is a dividend on a preferred stock that is basically required to be paid…? My logic was that since it was known to be paid for preferred stock holders at, say, 12.31 wouldn't that meet the matching principle?

[Anonymous]

I believe if it's on cumulative preferred it has to be disclosed in the FN and accounted for in terms of EPS, but not necessarily accrued…I could be totally wrong. I agree with @ReckedRacing though that it's not actually accrued until declared.

[Anonymous]

@CPAthethird: from my Becker book: the cumulative feature provides that all or part of the preferred dividend not paid in any year accumulates and must be paid in the future before dividends can be paid to common stockholders. The accumulated amount is referred to as dividends in arrears.
Hope this helps!

[Anonymous]

This does help! So if I am translating this right – if preferred stock dividend is $1 per share (1000 share O/S), that would be $1000 per year. If in Year 1 they paid $250, Year 2 or 3 they paid nothing, the dividend in arrears @ 12.31.3 would be $2750 disclosed and not accrued.

[Wannafree]

@cpathird , you got it.

[IwannabeaCPA2017]

F10 Module 6 on the Govt wide reconciliation is horrible! the stupid mnemonic doesn't help. CPA ride or sit….seriously? Anyone have any good ways to remember what is added or subtracted.

[Anonymous]

IwannabeaCPA-if you don't focus on ridiculous Becker mnemonics (I Hate them!) and just about converting the modified accrual to full accrual it makes much more sense!

[Anonymous]

I don't think this breaks any rules (correct me if I'm wrong) but when I took FAR the first time, I did not study F10-M6, outside of watching the lecture, and got a “comparable” in the gov't section. I ultimately ran out of time studying so I chose to ignore that section. I will probably try to at least have a good idea of the concept and then focus my attention elsewhere.

[Sturg]

Just walked out of my FAR exam. More DRS than I would have liked. 2nd guessed myself on all of them but my MC was fairly strong.. Have absolutely no idea what to expect but fingers crossed. Do you guys just start studying for the next section and move on or wait for score?

[Wannafree]

Sturg , 6 DRS ? Did you see blueprint and Becker's SIM?

[Author]

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