[jeff]

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

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

[Sticky Nicky]

wondering how the exam expects you to answer some of these questions within 1.5 minutes…i have questions here that take me 5 min to read and sort thru the BS,,is this how it really is?

[livealittle]

@Sticky nicky sometimes

there are paragraph long questions there are also super short gimme questions like name the 4 parts of the exam – not really but you get the idea.

BEC - 8/8/16
REG - 66, 77
AUD - 81
FAR - 9/8/16

[Namstut]

Sticky Nicky I was thinking the same thing! My first round it takes me up to 10 minutes for some of the questions!

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[Ms_CPA]

Exam date is 2/15 but I'm not ready😩 3days left for review

[GiniC]

@Namstut – Yes, HRSexton and I discussed that one, and I sent it in to Becker. The trick on that one is that they are still following the old statement, even though it's superseded. Becker confirmed we are being examined on the new statement (all DTAs and DTLs are non-current) but didn't say why there are still several questions that ask about the old way.

[nardo]

k so mcq was easy the whole time so i was like wow i fail. then since i had time to spare i took a break to relax… worst mistake ever, despite reading about EVERYONE saying not enough time for sims. (learning hard way only works for me) and im pretty sure i missed easy but time consuming sim because i spent time on probably a pretest sim cuz i never seen that format ever.

[Namstut]

@GiniC, thank you!

If Becker is aware of it I don't understand why those questions are still in the study material. This is ridiculous, it can easily cost someone a few points on the exam.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[mtaylo24]

Sad thing is that I'm not good enough to even notice the deferred tax/inventory differences that everybody is complaining about!

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)

[Namstut]

@mtaylo24, but the good thing is that it's ALL non-current, and that's all you have to remember. 🙂

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[GiniC]

HELP!!!

I'm completely confused on this question.

Company reported $70,000 cash paid for interest in its statement of cash flows.
Determine the interest expense on the current year's balance sheet, given
– decrease in accrued interest payable of 17,000, and
– decrease in prepaid interest of 23,000.

Answer is 76,000, but every time I try to follow a logical path to convert, I get 64,000.

Can anyone talk me through the logic of this? I'm terrible at memorizing rules, so I need to see how it actually works. This is killing me on statements of cash flows, it takes me far too long to work out logic. For this one I can't even SEE the logic. 🙁

[mtaylo24]

Hmmm…lemme take a stab at this (rolls up sleeves)

70,000-17,000+23,000=76,000

On your income statement you increase your expense by 93k (70 + 23), reverse your accrual for 17,000

Dr. Interest Expense 93,000 (inc stmt)
Dr. Accrued Interest Payable 17,000 (bal sheet)
Cr. Cash 70,000 (bal sheet)
Cr. Ppd Expense 23,000 (bal sheet)
Cr. Interest Expense 17,000 (inc stmt)

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)

[nardo]

@ginic make a t account for pp int and one for int/payable. bb pp int put 23 and 0 at bottom for ending. for i/p put 17 as bb and 0 at bottom for ending bal. put the 70k cash as a debit for i/p. that reveals you accrued 53 int expense which you would put on the credit side. exhaust 23k as the credit agasint int expense from pp

[Namstut]

I received a very quick reply from Becker. It's not really helpful and the point is that if you are not familiar with the new guidance and take FAR In Q1 you are pretty much left to fend for yourself and pay a close attention to the discrepancies between the MCQ/SIMs answers and the book.

Here is the reply:

I just looked at the question and I agree that this “seems” misleading.
I also checked the V3.0 version and they have “removed” that comment from the answer.
Thus I believe you have a valid point.
As long as you ignore the comment and stick to the NEW guidance, you will be fine.

AUD 7/6/16 Passed
BEC 9/3/16
FAR TBD
REG TBD

[mtaylo24]

Anybody bother with the free Wiley TB trial? I just ran through a set of 20 and it was pretty challenging. Only 1,500 questions for Far (less than Ninja and defintely Gleim), plus they have sims..

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)

[demarcon]

@GiniC You paid $70,000 in cash, but $17,000 of that was for last year (the accrued expense) and $23,000 was already paid for, you're just going to expense it now.

$70k – $17k (last year's exp) + $23k (non-cash expense) = $76,000

Or if you set up your Journal Entries. Reducing prepaid is a credit, reducing accrued is a debit, you already know cash so the expense is a plug.

Dr. Accrued Expense $17,000
Dr. Interest Exp $76,000 (plug)
Cr. Cash $70,000
Cr. Prepaid Expense $23,000

For cash flows and things like this, I always like doing the journal entries and plugging the number I am looking for. It works for the statement of cash flows the same way with changes in AR and changes in AP.

[Author]

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