[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

[marqzho]

MaLoTu

Thanks! I want to work in public. I'll look into the CalCPA.

REG 90
FAR 95
AUD 98
BEC 84

[Spartans92]

Congrats marqzho and everyone that passed FAR or any other sections! Also thanks to you Just3 for taking time writing out all of that info!! really appreciate it. Seems like adding ninja is the consensus and only benefits when come test day.

BEC- PASS

[Incoming91]

I wanted to thank all of you that helped me with questions on this thread! I passed the beast on my second go! I wish everyone good luck on their journey!

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[mckan514w]

YAY marqzho!!! Knew you would do it!!!

Yay incoming!!!!

@Claudia- yea thats exactly what I am saying- if I had failed with a score in the 70's I may feel differently but because my score was so low there really isn't all that much that I can build on- I need a complete and fresh start and the further away from the test I can get the better equipped my brain will be able to handle studying for it again (both mentally and psychologically)-

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

[Incoming91]

Thank you

Just3 gave some great points as well.

For me, this was my second go at FAR. Getting a failing score is not fun, of course. Remember that this is just a test and that you can take it again. The difference between my first attempt and second attempt was that I decided that I would be able to explain to someone else any topic in FAR and tested this on family members and sometimes would speak topics out loud (yes weird but it works). Many people write out their notes and I decided I would type some of them out in excel for the topics that I knew I was not very strong in. This helped a ton for retention of concepts. If your gut tells you that your not strong in a certain topic, do not just move past it. Every single thing is fair game in all sections of this exam.

Good luck to you all, I mean that! Keep your heads up and keep fighting. You WILL finish this marathon!

Regards –

REG: 80
FAR: 78 (x2)
AUD: 6/10
BEC: 7/20

[ImCPA]

SO I finally can say Bye Bye to FAR.. 85 on first attempt!

@Just3: Happy that you too made it! Time for some celebration

Thank You everyone, the credit goes to all of you who have been so helpful in this FAR journey. It's doable and we all can do it.. Go guys, nail it !!!!!!!!!!!!!!

FAR - 85 (5/10/2016)
AUD - 89 (7/12/2016)
BEC - 9/07/2016
REG - TBD

[JT]

Anyone got some advice on how to improve from a 73 on the first attempt?

My retake is in 2 weeks. When I took it the first time, I felt very unprepared. Now, I feel more prepared. The first time I did comparable in MCQ's but bad in Sims. I should be atleast comparable in MCQ's now but maybe I'm stronger in MCQ's. Im looking to hit some sims to improve and possibly hit more MCQ's.

Any suggestions?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Just3Letters]

Patel,

I really didn't prepare too much for the sims to be honest. I just did thousands and thousands of MCQ and I truly believe they prepared me just fine. I did some simulations but it's not like REG where sims can actually help you learn. As long as you understand the format of the sims I think you are good. It's a crapshoot with the sims you get. I don't think any sims are harder than others, I just think some sims are in your weaker areas.

So I guess the biggest “Sim” advice is to not skip over any areas that you are struggling with. Don't be like “Man, deferred taxes suck, let's move on. I shouldn't see too much of that”. Understand IFRS differences too because they are testable on MC and sims.

But when I actually got to the sims on the exam, I skipped to the research question and did that first for a little confidence boost. When I struggled with a sim (which I did for a couple of them), I left them and went on to work other sims. Just like in college when I did this on tests, I came back and typically found something that I missed. This was super key for me passing.

Good luck everyone! No excuses. Just study!

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[MaLoTu]

I took in class instruction for Becker and the instructor said to do the easiest sims first, not for confidence, but you don't want to run out of time and miss the easier points. I always look at all my sims before I dive in. I typically start with the research, although it is not always the easiest of the sims.

[KJ]

I always get this wrong. Any has any suggestions how to approach these type of questions. I think T-accounts probably better?

On November 1, 20X1, Key Co. paid $3,600 to renew its only insurance policy for three years. On December 31, 20X1, Key's unadjusted trial balance showed a balance of $90 for prepaid insurance and $4,410 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense in Key's December 31, 20X1, financial statements?

Select an answer:
A.
Prepaid insurance: $3,300; Insurance expense: $1,200

B.
Prepaid insurance: $3,400; Insurance expense: $1,200

C.
Prepaid insurance: $3,400; Insurance expense: $1,100

D.
Prepaid insurance: $3,490; Insurance expense: $1,010

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]

I am a fan of JE and T-account. You need to have a clear mind to break it down into pieces. Here is the flow:

On November 1, 20X1, Key Co. paid $3,600 to renew its only insurance policy for three years.
-> it said Key paid $3600 for the only insurance for 3 years. So 3600/36 = $100 per month

December 31, 20X1, Key's unadjusted trial balance showed a balance of $90 for prepaid insurance and $4,410 for insurance expense.
-> We don't see that $3600 in prepaid insurance, so we can conclude that the $3600 prepaid is included in the $4410 expense. The company probably do Dr. insurance expense $3600 Cr. Cash $3600
-> So we need to adj. it first by Dr. Prepaid 3600 Cr insurance expense 3600
-> Since question said $3600 is the “ONLY” policy, that $90 prepaid should be for an old policy and get expensed. We will do insurance expense 90 prepaid 90
-> Then we need to expense for Nov 01 to Dec 31. Dr. insurance expense $200 Cr. Prepaid insurance $200
At the end, you will have
Prepaid Insurance = 90+3600-90-200 = $3400
Insurance expense = 4410-3600+90+200 = $1100

REG 90
FAR 95
AUD 98
BEC 84

[MaLoTu]

Thanks, marqzho! I don't know if I could have figured that out.

@kanwal- Another little tidbit I picked up is that anything left in prepaid on the trial balance is expensed. I had a Becker problem that was similar and if I come across it I will post it for you.

[KJ]

Thanks marqzho!! Made it easier!!

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

[Claudia408]

marqzho – so u finally decided to brag about your scores huh? 🙂 lol. well deserved i'm sure, you're an accounting animal!

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

[Anonymous]

This question has me stumped. Why isn’t the answer $4000? I thought unrealized gains/losses of AFS securities are recognized in OCI not the IS. Thanks for your help!!!

From Wiley Test Bank
Cook Company had the following investment portfolio of stocks that were purchased during year 2.
Stock Classification Cost Fair Value 12-31-Y2
Company R Available-for-sale $30,000 $32,000
Company S Trading $42000 $46000
Company T Available-for-sale $15,000 $18,000

Cook elects to use the fair value option for reporting all of its financial assets. What is the unrealized gain recognized on the income statement in year 2?
$0
$4,000
$5,000
$9,000

Answer: 9000. Cook elects to use the fair value option. Cook will value both its trading securities and available-for-sale securities at fair value, and record the unrealized gains in earnings for the period. The gain is equal to $96,000 ($32,000 + $46,000 + $18,000) minus $87,000 ($30,000 + $42,000 + $15,000), or $9,000.
This answer is incorrect. Cook elects to use the fair value option. Cook will value both its trading securities and available-for-sale securities at fair value, and record the unrealized gains in earnings for the period. The gain is equal to $96,000 ($32,000 + $46,000 + $18,000) minus $87,000 ($30,000 + $42,000 + $15,000), or $9,000.

[Author]

Replies