[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

[MaLoTu]

Good luck to you too, Spartans!

[patelhj1]

Everyone good luck thats waiting for score release will be in my prayers!

@SONA I know what you mean I'm suppose to finish F9 read and Becker MCQ today and begin practicing SIMS. Some of these chapters are really long and intense

For SIMS and JE I plan on redoing all of Becker SIMS and then attempting few of NINA Sims.

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[MaLoTu]

@laura – your post just barely popped up! It is really hard to say how much time should be allocated because it depends on your understanding of the topic and how comfortable you are moving on. I personally like to review by going through the book and answering about 10-40 questions per topic. I will be 70% of the way through my material review today. After I have gone through everything once I will start going back through the material doing more MCQ and some SIMS. I think that you gain the most understanding on the second pass of the material … it recalls the information to your short-term memory and it is likely that you have seen some of the same concepts in subsequent chapters which makes the earlier info click when you revisit it.

If you have any specific questions I am sure someone on the study thread has an answer … Ill check back periodically through the day.

[KJ]

Good luck spartans, just3letters and marqzho!!! I am sure you all passed!!

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

[MaLoTu]

Mini rant – I hate NFP accounting!

[KJ]

So debt issuance costs are deducted from carrying amount and no longer reported on balance sheet as deferred charges which means they are no longer amortized. Am I correct?

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

[marqzho]

They are still amortized just like discount and premium. It will be amortized SL through the interest expense.

REG 90
FAR 95
AUD 98
BEC 84

[SONA]

The answer is A. I could not reach to the answer can anyone help.

On December 31 of the previous year, Jason Company adopted the dollar-value LIFO retail inventory method. Inventory data are as follows:

LIFO Cost Retail
Inventory, 12/31 previous year $360,000 $500,000
Inventory, 12/31 current year — 660,000
Increase in price level for current year 10%
Cost to retail ratio for current year 70&

Under the LIFO retail method, Jason’s inventory at December 31 of the current year should be:
A.
$437,000.
B.
$462,000.

C.
$472,000.

D.
$483,200.

[Anonymous]

Quick question on NFP entities, I thought all unconditional contributions were recorded when the donor states their unconditional promise to give. The question below states otherwise. Is this question wrong, or have I just thought wrong the entire time? Am I confusing something else? The correct answer is B. Thanks!

Which of the following best describes a situation in which an unconditional contribution should be recognized as revenue by a private not-for-profit organization?

A.
In the period when cash or other assets are received at the carrying value on the books of the donor

B.
In the period received at fair value

C.
In the period in which the donor states its unconditional promise to make the contribution and at the carrying value on the books of the donor

D.
In the period in which the donor states its intention to make the contribution and at fair value

[KJ]

Thanks Marqzho!!

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

[MaLoTu]

@boating – weird, it seems it should be D. What software is it you are using? According to Becker F9-53 the answer is D.

[patelhj1]

My guess would have been D also – NFP and Gov't all new stuff to me, never had any college class or anything

BEC 78 08/2015
REG 71 11/2015, RETAKE 83 01/2016
FAR 75! 5/2016
AUD ? 8/2016

Becker with Nonstop NINJA MCQ
Google most difficult professional exam

[Anonymous]

The city reported rev over expenditures of $25k for all governmental funds for the year ended 12/31/2. The city has capital outlay of $600k partially funded by debt proceeds of $500k at 12/31/2. the city paid $219k of debt service expenditures during year 2, which comprised of principal payment of $100k and interest payment of $119k. Interest of 4% is due every 6 months on 4/1 and 10/1 on total debt reported on 12/31/1 of $3 million. The increase(decrease) in net position to be reported for the city's governmental activities is
a) 225k
b)125k
c) 224k
d) 226k

the answer is d

I don't understand the treatment of interest expense. The answer key says that the prior year accrual of interest exp (3m*0.04*3/12 = 30k) in the statement of activities was included as an expenditure in the computation of the change in fund balance in current year and must be added back. the current year accrual (3m-100k = 2.9m*0.04*3/12=29k) was excluded and therefore must be subtracted to arrive at the change in net position.

1. why is the prior year accrual included and why is the current year accrual excluded?
2. Also, which 3 months does the answer key refer to?

thank you!!

[Anonymous]

This comes directly from NINJA MCQs, seems the answer is coded incorrectly. Glad I got a second opinion. Thank you!

[Christopher Gutierrez]

@lauragrigs Same here and I am testing June 6, so I am a bit worried at this point.

[Author]

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