[jeff]

Welcome to the Q2 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

[EuroAddict]

DR: RE 60,000
CR: Accum Dep 60,000

-----------------------------
BEC - 77, 03/2015 (first try)
FAR - 79, 05/2015 (second try)
REG - 83, 12/2015 (first try)
AUD - 84, 03/2015 (first try)

I got 99 problems but the CPA ain't one.

[thedude]

@kanwal78

Thanks for helping it make sense.

Aud: 42 (ouch)

All others TBD

[rdpirock]

Hello all! New member here- just purchased FAR Ninja Notes & MCQs to hopefully pass FAR on the 3rd try. Need to pass FAR and AUD by July 31 before my credit for BEC drops off! Any suggestions are welcome!

BEC: 76 (Jan 2015) REG: 79 (Aug 2015) FAR: 68,64

CPAExcel, FAR Ninja Notes & MCQ

[Claudia408]

Spartans – what's the mnemonic (GRaSPP Nu CAR) suppose to help with? the govt fund types? i think the challenge is the stupid JEs. I'm so scared I'm gonna get a SIM on it.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Spartans92]

@claudia yea thats for the fund type. I should have read the sections before freaking out. This section isn't that bad actually, it is probably because I am better at concepts than calculations. I got the highest average on the MCQ (88%) out of all the topics I have covered so far. Honestly, for the JE I memorized the account title but some makes sense. Good Luck!

BEC- PASS

[Zyx]

Hey guys, I have started FAR. I'll join this group for the next 2 months. I ran into my first question;

During the year, Hauser Co. wrote off a customer's account receivable. Hauser used the allowance method for uncollectable accounts. What impact would the write-off have on net income and total assets?
Net income Total assets
a.Decrease Decrease
b.Decrease No effect
c.No effect Decrease
d.No effect No effect

I picked c. but it's wrong. The answer is d.
Journal Entry to write off allowance uncollectable ;

Allowance for doubtful account debit
AR credit

so why it has no effect on total assets while it reduces AR??

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[Spartans92]

@zyx, Im gonna try to take a stab at it. Since the AFDA account is a contra asset and AR being an asset account the two offsets each other, hence, no effect on total asset. It is evident there is also no impact on net income unless there was bad debt. Hope that helps.

BEC- PASS

[Zyx]

Thanks Spartans92, that makes sense!

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[Spartans92]

Can anyone simplify this. Cant get my head around backer's explanation.
The State levies a 4% sales tax on merchant sales volume while the local government levies a 2% tax on the same activity. Merchants are required to remit the full amount of all levied taxes to the State government within 15 days of month end and the State is required to remit collected taxes to local authorities within 30 days of receipt. Assume the State and local authority had June 30 year-ends, and that sales volume for the months of June and July were $100,000 and $200,000, respectively. At June 30, each government would accrue the following related to sales activity:

a.
$12,000
$6,000
$6,000
b.
$4,000
$2,000
$2,000
c.
$12,000
$6,000
$2,000
d.
$12,000
$4,000
$2,000

Answer is B.

BEC- PASS

[Spartans92]

Nvm. Got the question figured out! ^^

BEC- PASS

[Spartans92]

Can anyone simplify deferred inflow and outflow for me? I read the section and don't understand still. Basically just memorizing the equations of the presentation for the government wide and government fund financials. I know by definition deferred outflow is the consumption of net assets while inflow is the acquiring of net assets. How do I differentiate the two?

Here is an example
The employer net pension liability for the Golf City Fire Department decreased by $200,000 from Year 1 to Year 2 as a result of a change in actuarial assumptions used to value the employer net pension liability. As a result of this change, Golf City will display the following on their Year 2 government-wide financial statements:

a.
Note disclosures only
b.
Deferred inflows of resources of $200,000
c.
Deferred outflows of resources of $200,000
d.
Pension Expense of $200,000

BEC- PASS

[KJ]

@ Spartans92..Deferred outflow is similar to assets (e.g. prepaid assets) and inflow is similar to liabilities (e.g. unearned revenue). Hope this helps!!

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[KJ]

Correct answer is B, I guess.

FAR - August 2016
AUD - September 2016
REG - October 2016
BEC - November 2016

Remember: "Everything should be made as simple as possible, but not simpler." - Albert Einstein

[Spartans92]

Thanks kanwal! That helps but I still can't apply that logic to the question and B is the right choice. Can you explain how you came up with the answer?

BEC- PASS

[Claudia408]

For Stmt of CF under the direct and indirect methods… I'm not sure about adding/subtracting assets or liabilities, or adding/subtracting from net income… I think generally if the asset increases, you subtract, then if the liability increases you add. But I think that depends on which method you are using?

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Author]

Replies