[jeff]

Welcome to the Q1 2017 CPA Exam Study Group for FAR. 🙂

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

[Anonymous]

I think an important distinction to make for cash flow statement questions is: did the company actually receive or disburse cash? In the question of a capital lease, the entity never outlaid any cash for asset acquired thus this is a noncash transaction. When the company pays the lease it is treated as principal and interest. The principal payments are reported in the financing section.

[A1lessio]

Test tomorrow and I feel like I don't know much of anything…

A co-worker got the same exact becker exam score (67%) as me and got an 81% on actual, I hope I can pull off the same.

AUD (08/02/2016)

[mckan514w]

GOOD LUCK @A1lessio!

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Anonymous]

@A1lessio,

Are you only doing one of the final Becker exams? I got the same score as you, and as I reviewed it, realized I just made a lot of stupid mistakes. Tomorrow is my last day (take my exam Saturday), and don't really want to wear myself out too much. I don't know if I should run through the second final exam quickly just to see the questions and strategies? Or actually take it seriously? Does anybody else have any other suggestions? Thanks! 🙂

[A1lessio]

I also made a lot of stupid mistakes. I think it was helpful though. Each category I messed up, I went back and reviewed a bit. My test is in the afternoon tomorrow, I may take the 2nd one now and get to bed by midnight.

AUD (08/02/2016)

[mtaylo24]

@A1lessio good luck tomorrow!

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[A1lessio]

Thanks! I studied way too much today. Need to get some sleep and just stop.

Becker Practice exam # 2: 75% combined.

MCQ =: 62% x .6 =37%
Sims: 96% x .4 =38%

I will keep you guys posted.

AUD (08/02/2016)

[NYaccountingstudent]

Lake County received the following proceeds that are legally restricted to expenditure for specified purposes:

Levies on affected property owners to install sidewalks $ 500,000
Gasoline taxes to finance road repairs 900,000

What amount should be accounted for in Lake's special revenue funds?
a. $0
b. $900,000
c. $500,000
d. $1,400,000

Explanation
Choice “b” is correct. The amount to be accounted for in the special revenue fund would include only gasoline taxes to finance road repairs.
The levies (special assessments) on affected property owners to install sidewalks would be accounted for in the capital projects fund.

I dont get why gasoline tax is a special revenue fund and levies on affected properties is accounted for as a capital projects fund

[NYaccountingstudent]

I plan to go through and read this whole thread once i have Becker finished. I am on chapter 8 of 10 right now.

I hope to be reviewing and reading this thread by the end of January

[Stilgoin]

Road repairs are an expense, like maintenance and repairs. Building sidewalks are a capital project because you are constructing something.

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[mtaylo24]

A grand SMH to this question. Anyone want to take a stab at it? (Please excuse the formatting)

Peters Corp.’s capital structure was as follows:

December 31

Year 7 – Year 8

Outstanding shares of stock:
Common 100,000 (y7) 100,000 (y8)
Convertible preferred 10,000 (y7) 10,000 (y8)
9% convertible bonds $1,000,000 (y7) $1,000,000 (y8)

During Year 8, Peters paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock, and the 9% bonds are convertible into 30,000 shares of common stock. Assume that the income tax rate is 30%.

If net income for Year 8 is $350,000, Peters should report DEPS as

A. $3.20
B. $2.95
C. $2.92
D. $2.75

AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)

[NYaccountingstudent]

@stilgoin

So with governmental accounting, when im trying to choose which fund it goes in for (GRASPP SE PAPI) i have to look at what the money is being used for?

How they collect the money doesnt matter?

[NYaccountingstudent]

Nevermind i think i answered my own question with this becker question:

Fund accounting is used by governmental units with resources that must be:
a. Segregated physically according to various objectives.
b. Composed of cash or cash equivalents.
c. Segregated for the purpose of carrying on specific activities or attaining certain objectives.
d. Incorporated into combined or combining financial statements.

Explanation
Choice “c” is correct. A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein. Fund resources are segregated for the purpose of carrying out specific activities (e.g., water and sewer operations) or attaining certain objectives (e.g., providing drinking water and wastewater management services to customers).

So i was right, funds are chosen on what the money is used for, not how they obtained the money??

[Stilgoin]

Yes- capital projects is its own fund and anything to do with capital projects is accounted for in that fund. Special revenue would be like gasoline taxes to finance road repairs, or maybe certain revenues collected to keep up maintenance for a park, or special revenues to handle storm water expenses like drain maintenance. A capital project would be installing storm drains or building a park.

B | 62, 78
A | 73, 67, 79
R | 82
F | 59, 59, Waiting

Ethics | 93

"Success is not final, failure is not fatal: it is the courage to continue that counts."
~Winston Churchill

“In a world full of critics, be an encourager."

[A1lessio]

Pass or fail, glad that's over. I definitely underestimated the gov't/nfp sections. The first testlet was so easy. I think I only got one or two wrong. The second testlet significantly harder, and the third was very hard. The third testlet was pretty much 30 educated guesses. I had one gov't sim that I had no idea on and the rest were manageable. Definitely more manageable then the REG sims. I gotta say the Document review sims is overwhelming at first, but once you realize what all the tabs are it's not that bad. The only reason I am somewhat optimistic is because my Becker Practice exam score were similar for audit and reg and I passed both of those.

Hope to never open that FAR book again.

I recommend a solid understanding of debits/credits and know the big topics well. EPS,Bonds, consolidations, pensions, Inventory, etc. Make sure you understand the big picture. I spent hours learning % of completion, installment sales, dollar value lifo, pensions and saw nothing on it.

AUD (08/02/2016)

[Author]

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