[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for FAR.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[JLLLLLLL]

Just pass/fail matters. The actual score does not matter, nor does it get released without your consent

FAR - 85 (01/2016)
BEC - 88 (05/2016)
AUD - 09/2016
REG - plan to take in 11/2016 or 01/2017

[Anonymous]

Hi All –

I just finished the Roger lectures and plan on doing MCQs non stop until my exam on 1/25. I'm feeling overwhelmed by the amount of information I need to retain and am scoring about 50% on average. Any advice on the best way to get through this information? Should I go through each chapter one by one or mix everything together?

Thanks

[lincoln6echo]

@ JLLLLLLL, thank you very much, that is helpful info.

@ ana6056, I am finding it helpful to focus on one topic and get the basics of that, including both MCQs and a few sims for practice, and then complete practice exams which have a mixture of questions from all the areas. For me, if I try to mix everything together right away it gets overwhelming and does not help me retain the information. If you are getting 50% in areas that is not too bad, but you may need to slow down and get the individual areas nailed down, before trying it all together, hope this helps!

[hhung1485]

Hi everyone. I will be taking my exam in feb right after the becker live course. I had already review up to chapter 9 for becker Non for profit and hoping the live course will give me a final refresher before i sit for FAR..

I am hoping I can get some guidance on a Non for profit question.

ABC university is Non-for Profit and has a permant endowment from a donor. The earnings much be used for program service. The investment produced $60,000 investment earnings but value of investments fell by $100,000. University spend 30,000 on programs designated by donor.

The questions asks for total impact on each account and these are the answers.

Temporarily restricted revenu $60,000
Unrestricted expense $30,000
Unrestricted Loss on investment (70,000)
Temporarily restricted loss on investments (30,000)
Temporarily restricted net assets release from restrictions $30,000
Unrestricted Net Assets – ($70,000)

The question does not ask for J/E but I am trying to understand this question by making entries for what has occured

Investment income 60K

DR – Cash – temporary restrict 60k
CR- Revenue – temporary restrict 60k

Spending 30k

DR- Temp Restricted asset released from restricted 30k
CR – Cash – temporary restricted 30k

DR – Cash – unrestricted 30K
CR – Temp Restricted asset released from restricted 30k

DR – Construction expense 30k
CR – Cash – unrestricted 30K

As for the 100k unrealized loss. First we reduced it by temporary restricted net assets. Since we have 60k gain and 30k got reclass for construction we have 30k left.

So a (70,000) loss remains goes to unrestricted loss investments

DR – Loss on investment – unrestricted 70k
DR – Loss on investment -Temporarily restrict 30k
CR – Unrestricted Net Assets – 100k

Please correct me if any of my entries are wrong.

What i dont understand is this
Temporarily restricted net assets release from restrictions $30,000

How is there a balance left in this account. Based on the entries and the lectures. This temporarily is basically like a holding account when we reclass temporary restrict to unrestricted. May some explain to me how there is a remaining balance?

I would appreciate any help or guidance.

FAR - 93
REG - TBD
BEC -
AUD -

[pyacpa49]

@hhung1485, When I read this question I take it to mean what is the impact of this transaction on the account.In looking at it this way, when the NFP Entity uses the $30,000 for programs this increases the Temp Restricted asset released from restricted as you have it. If I'm not wrong this is where they would be getting this answer from.

From what I remember from my studies you are correct, these release accounts are closed into the appropriate Net Asset accounts at year end. I just think the question is asking more in terms of this individual transaction rather than asking for the impact for the entire year.

Not sure how well I explained that.. It makes sense in my head but doesn't look as good now that I have it typed. Does this help?

[Anonymous]

@ Cortes, good luck today in your exam! Let us know how it goes

[Andyred04]

Anyone know the rough distribution between calculations and theory based questions? I'm using Gleim to study and I swear roughly 85-90% of the MCQs that I've done so far have been calculations.

Anyone who has taken FAR previously know if this is the case for the actual exam?

FAR: 80 (Gleim, Ninja Notes, Ninja MCQs)
REG: 87 (Gleim, Ninja Notes, Ninja MCQs)
BEC: 87 (Gleim, Ninja Notes, Ninja MCQs)
AUD: 8/27/16

PA Candidate

[KG1991]

I thought it would be a good idea to contribute something to this group. I have been studying for the CPA exam on and off a couple months now (things got in the way). Ive noticed that there is quite a bit of fluff in these problems. For instance the following bond problem:

On July 31, 2005, Dome Co. issued $1,000,000 of 10%, 15-year bonds at par and used a portion of the proceeds to call its 600 outstanding 11%, $1,000 face value bonds, due on July 31, 2014, at 102. On that date, unamortized bond premium relating to the 11% bonds was $65,000. In its 2005 income statement, what amount should Dome report as gain or loss, before income taxes, from retirement of bonds?
A.
$53,000 gain

B.
$0

C.
$(65,000) loss

D.
$(77,000) loss

The first sentence is essentially just fluff. I thought it would be a good idea to point this out as long/wordy questions can be intimidating. The first sentence isn't needed because the gain on the retirement of debt is simply the difference between the price you pay and the carrying amount of the debt.

FAR 02/07/2016
REG TBD
AUD TBD
BEC TBD

[JLLLLLLL]

I took FAR today… my first CPA exam ever.

Thinking back to the SIMs, I think some of them said to put 0 in cells that are not used. And I forgot to go back and put 0's in. If 75% of the cells in one SIM should have been 0s and I just left them blank, does that mean I can only get a max score of 25% on that SIM?! Or if I am close to passing, will the examiners manually go in and look at my SIMs and realize I did get more correct than the computer shows?
#freakingout

FAR - 85 (01/2016)
BEC - 88 (05/2016)
AUD - 09/2016
REG - plan to take in 11/2016 or 01/2017

[JLLLLLLL]

@Andyred04 – To answer your question about the distribution of calculation questions vs. concept questions, I'd say the distribution on the cpa exam would be closer to 50/50 with maybe slightly more concept questions. I was shocked too because Becker exams were heavily calc focused

FAR - 85 (01/2016)
BEC - 88 (05/2016)
AUD - 09/2016
REG - plan to take in 11/2016 or 01/2017

[marqzho]

JLLLLLLL

I am sorry to hear that. But no one will go into your answers and manually do anything no matter you score a 74 or 98 or 1. If the answer is 0 and you leave it blank, you lose that score. No need to freakout. That portion of score may not be that critical to your overall score.

REG 90
FAR 95
AUD 98
BEC 84

[Anonymous]

@JLLLLLLL I really do not know the answer to your question. I took FAR in Nov and got a 74. My weak area was on SIMS and basically because I ran out of time to complete one of them. I am not sure how closely they look at what we actually did on the sims because I am pretty sure I could've received an extra point for the work done. Good luck to you!
REG:77
BEC:73/74/81
AUD:58/76
FAR:74/ Feb 2

[ILCPA2014]

I just took my BEC test this afternoon. I will start studying FAR again after failing it twice.

AUD Passed 78 (4x) Thank you Lord.
REG Passed 81 (2x) Thank you St Joseph of Cupertino
FAR Passed 77 (3x) Thank you St Joseph of Cupertino. Thank you Lord.
BEC TBD
My CPA journey started in 2013 and it will be finished in April 2016. That's for sure!!
Ethics 91

[cpa007]

Please help me on this Q?

Data regarding Ball Corp.'s marketable equity securities classified as available for sale follow:

Cost Market Value
December 31, 20X1 $150,000 $130,000
December 31, 20X2 $150,000 $160,000

Differences between cost and market values are considered temporary. The decline in market value was considered temporary and was properly accounted for at December 31, 20X1. Ball's 20X2 statement of changes in stockholders' equity would report an increase of
Your Answer:

a.
$30,000
b.
$20,000
c.
$10,000
d.
$0
correct : a The correct answer is identified as $30,000 Differences between cost and market values are considered temporary. The decline in market value was considered temporary and was properly accounted for at December 31, 20X1. Ball's 20X2 statement of changes in stockholders' equity would report an increase of”
The correct answer is identified as $30,000.

Why not net $10000 (cost 150000- FMV $160000) i thought in SHE section it reports cumulative amount in AOCI.

[marqzho]

<Dec 31 x1>
Dr. OCI 20
Cr. investment in AFS 20

<Dec 31 x2>
Dr. Investment in AFS 30
Cr. OCI 30 <-statement of changes in stockholders' equity would report an increase of $30,000

the Net effect is reported as AOCI $10,000(-20+30)

REG 90
FAR 95
AUD 98
BEC 84

[Author]

Replies