[jeff]

Post by Another71.

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

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

[want2pass]

My test is this weekend!! AH! I've been redoing Becker homeworks and doing progress tests.I've gotten mid 50's on one and a 69 on another. Granted, it wasn't for all of the lectures, but still. Is it worth rescheduling for the following week?

[plotikkk85]

To Galina-Virginia:

We do not use Year 3 data because comparative statements cover Year 4 and 5.

Hope that will help.

[Galina-Virginia]

Thank you plotikkk85,

I thought that here they asked what is a cumulative result for COGS as 12/31/05, and since 05 should involve 04, the 04 should correspondingly involve 03..

[RTCPA]

hellooo

can anyone tell us what is the best way to use the search tools in the research authoritative literature

thnx

[omalloy]

@RTCPA, After I type in the key words, knowing seven financial accounting and reporting categories of the codification, helps me to narrow down topics quickly after search engine throws hundreds of options . Then I often find answers to research questions in either Subsection 10 or 45.

FAR 65, 70, 78
REG 64, 76
BEC 70, 80
AUD 81

Ethics 96

Péter un plomb

[jbarwick]

@RTCPA Becker suggests using the Advanced Search which allows you to narrow down search items. It also helps picking some key words out of your problem and searching on those. Searching for something broad like “assets” will return a lot of results but narrowing that down in the search to “asset amortization” or “asset impairment” will narrow down the results returned. In the few SIMS I have tried so far, this has helped. It also helps understanding how the answers are formatted as the first couple of time I did not understand the paragraph portion which made me miss the question.

Journey Started - January 2015
FAR - 4/2015 - Passed
AUD - 7/2015 - Passed
BEC - 8/2015 - Passed
REG - 11/12/2015 - Passed

[CPA50]

CPAbefore40 – I still have that problem – we call it “RTMFQ”. Read the … question 😉

For me, nothing solves it better than just lots and lots of MCQ to practice and say to myself – “Read the Question!!”

It's especially tricky when one of the answers is the wrong way to do it. I have a bad habit of skimming and picking the answer too quickly. Practice, practice, practice . Slow down and parse the phrases. Oh, and breathe 😉

AUD 88 (expired), 80 retake
FAR 64,69,67,73,67,73,73,73, August 3
REG 75 (expired) September 7
BEC 72, 77

The adventure continues...

[Determined CPA]

In preparing its cash flow statement for the year ending December 31, 20X1, Reve Co. collected the following data:

Gain on sale of equipment $ (6,000)

Proceeds from sale of equipment 10,000

Purchase of A.S., Inc., bonds

(par value $200,000) (180,000)

Amortization of bond discount 2,000

Dividends declared (45,000)

Dividends paid (38,000)

Proceeds from sale of treasury

stock (carrying amount $65,000) 75,000

In its December 31, 20X1, statement of cash flows, what amount should Reve report as net cash used in investing activities?

Answer is 170,000 (180,000-10,000)

Why isn't the gain included? I thought gains from sale of equipment were included in investing?

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[slgavin7]

@Determined

The gain is already included in the $10K (proceeds from sale of equipement = total cash received from the sale).

That's a tricksy one though, it got me.

[Determined CPA]

ah that makes sense – ok thanks!

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[want2pass]

Does anyone understand when to use a the present value of an ordinary annuity, PV of $1, FV of an ordinary annuity, etc.? I always mix them up.

[jbarwick]

@want2pass

FV of ordinary annuity – Think end of year payments so you take out a loan on 1/1 and pay on 12/31. This will have a full years worth interest. 5 payments of say $10,000 with payments starting on 12/31 with all $50,000 collecting interest throughout the year.

FV of annuity due – Think beginning of year so you take out a loan on 1/1 and make a payment on 1/1. Watch as this usually decreases your base on which you pay interest at the end of the year. 5 payments of $10,000 with the first payment of $10,000 which means there is still $40,000 collecting interest throughout the year.

PV of $1 – You get an amount in the future and you have to figure out what it is in TODAYS dollars. So if I gave you $10,000 in 5 years, how much is that today based on my expected interest rate of say 7%. This is usually a 0.xxxx decimal as I will need less than $10,000 now to pay you.

Those are the 3 I see the most on Becker practice problems. The hardest part about these questions is figuring out the portions of a year so something starting at 6/1 will have 7 months interest at 12/31. When you look at it quickly you may think 6 months and they usually include this as one of the answers.

Journey Started - January 2015
FAR - 4/2015 - Passed
AUD - 7/2015 - Passed
BEC - 8/2015 - Passed
REG - 11/12/2015 - Passed

[Anonymous]

How is the answer to this one $40k? Conditional promises are revenue when earned, therefore the $30k pledge has not been earned as revenue?! The $10k is a cash contribution and is received thus it is revenue.

CPA-01212

State University received two contributions during

the year that must be used to provide

scholarships. Contribution A for $10,000 was

collected during the year, and $8,000 was spent

on scholarships. Contribution B is a pledge for

$30,000 to be received next fiscal year. What

amount of contribution revenue should the

university report in its statement of activities?

a. $8,000

b. $10,000

c. $38,000

d. $40,000

Rule: Cash contributions and unconditional

pledges are recognized as contribution revenue in

the year in which the cash or pledge is received.

Choice “d” is correct. State University would

account for cash contributions and pledged

contributions as contribution revenue in the year

the collection or pledge was made. Note that the

question asks for “contribution” revenue without

reference to classification.

Total

Contribution A $10,000

Contribution B 30,000

Total $40,000

[JS867_5309]

@Albo – The question asks what revenue is earned, not what type of revenues. In an NFP, any pledge is recorded as contribution revenue although it may be classified as deferred or restricted depending on donor stipulation.

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Anonymous]

I had to post this one, just because it is so absurd:

How are dividends per share for common stock used in the calculation of the following?

A. Dividend per share payout ratio as numerator and earnings per share as numerator

B. Dividend per share payout ratio as numerator and earnings per share not used

C. Dividend per share payout ratio as denominator and earnings per share not used

D. Dividend per share payout ratio as denominator and earnings per share as denominator

Answer: B – Dividends per share is the dividends paid out divided by total shares. Whereas the dividend payout ratio would be included in the numerator, the earnings per share is not involved, only the number of shares outstanding.

First of all, it never even states what calculation they are asking a question about. Second, if dividends per share is dividends/shares, and dividend per share payout ratio is dividends/net income……..HOW is the dividend per share payout ratio in the numerator?!?!?!? Am I the only one utterly confused by this? Have I just been studying too long?

Between what I've seen myself and what I've seen posted here, I think it's safe to say there is more than an insignificant number of errors in the AICPA question banks. It really makes me wonder……

[Author]

Replies