[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

[Pony Boy]

So FAR, those are actually pretty good scores for Becker practice tests. I have scored around that on both of my first 2 exams on the practice test and scored 5-10 points higher on the actual exams.

On another note, does anyone here use the AICPA released questions when reviewing? I haven't for any exams yet, but was considering looking at them for FAR. Thoughts??

REG (02/2016)- PASS
BEC (04/2016)- PASS
FAR (06/2016)- PASS
AUD (08/2016)-

"Stay Gold, PonyBoy, Stay Gold"

[JT]

@So FAR So Good….

You sound prepared so stay positive and rested! I wish you luck on your exam as well!!

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

[Groud]

I've tried quite a few things but can not seem to grasp business combinations, specifically Becker's CarInBig mnemonic.

I have searched this forum and seen a few threads about it but it keeps going over my head. I think I may have to punt this topic and hope I dont get pounded with questions on it.

✓ AUD: (85) Apr2014 ~~ (87) Apr2016
✓ FAR: (74) Aug2015 ~~ (74) Oct2015 ~~ (79) Jun2016
✓ BEC: (77) Apr2015
REG: ___

[MaLoTu]

@ So FAR, from what I have seen you are prepared for this and you are going to rock it! Good luck tomorrow.

[Anonymous]

i need some advice/suggestions. I failed my FAR in 2014 and finally decided to study for it again. How much did the material change? And if I take one in July/August (Q3 2016) should I wait till I get the materials to study with?

[So FAR So Good]

Thanks everyone! Hoping to report back with at least promising news.

@cpahellisreal – I can't imagine much changed since 2014 other than maybe more IFRS? I began exploring the CPA around that time and don't recall a ton being different. If anything, there's plenty that you could start looking over that would save you time later, some of which are:

Stockholders' Equity
EPS
Statement of Cash Flows
Leases
Bonds

Those are often some of the more difficult concepts for folks, and if IFRS is all that's changed, you can easily layer that in afterwards with the updated material.

F - 91 (6/5/2016)
A - 7/30/2016
R - 10/8/2016
B - 12/10/2016

[se7en.14]

Percentage of Completion Method

When computing step 1 for gross profit, is it:
“contract price – estimated total cost – cost” incurred?

or is that only for Completed contract method?

(is “contract price – estimated total cost” for % completion?)

I'm not sure where the “cost incurred” goes in the equation, I'm seeing it in some problems and not others.

[Zyx]

MaLoTu, thanks I keep doing mcq and score 30%, like so depressed!

se7en.14; I'm not so sure what you are asking.
I think gross profit is total contract – estimated total costs, step 1
Cost incurred is computed when finding the % of the contract that is complete which is cost incurred to date / total cost of the contract, step 2
Then compute gross profit earned to date; total gross profit *percentage complete, step 1*2

Completed method, revenue is recognized only when the job is complete regardless when the cost incurred.
Please correct me if it's wrong.

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

[FUBARFAR]

Hey everyone, I've got a FAR question that I'm having trouble with.

On May 1, Year 1, Marno County issued property tax assessments for the fiscal year ended June 30, Year 2. The first of two equal installments was due on November 1, Year 1. On September 1, Year 1, Dyur Co. purchased a 4-year old factory in Marno subject to an allowance for accrued taxes. Dyur did not record the entire year's property tax obligation, but instead records tax expenses at the end of each month by adjusting prepaid property taxes or property taxes payable, as appropriate. The recording of the November 1, Year 1, payment by Dyur should have been allocated between an increase in prepaid property taxes and a decrease in property taxes payable in which of the following percentages?

The answer is: 33.33 Increase to prepaid property taxes and 66.67% decrease to property taxes payable.

For the life of me, and, admittedly, I am not good at lengthy word problems, I cannot figure this out. Does anyone know how they got this?

Thank you!

FAR - 7/19/2016 - 83
BEC - 8/30/2016
AUD - TBD
REG - TBD

[Sherif Essk]

Sig City used the following funds for financial reporting purposes:

General fund
Internal service fund
Airport enterprise fund
Pension trust fund
Capital projects fund
Special revenue fund
Debt service fund
How many of Sig's funds use the accrual basis of accounting?

A.
Two

B.
Three

Incorrect C.
Four

D.
Five

the correct answer is B.how is that?

[Groud]

@Sherif Essk

Modified accrual for the governmental funds (general, special rev, cap proj, debt service, perm)

Accrual for the others: enterprise, internal service, fiduciary

Internal service, airport enterprise, pension trust (fid fund) are all regular old accrual.

edit: i guess it's worth noting that “modified accrual” =/= “accrual”

✓ AUD: (85) Apr2014 ~~ (87) Apr2016
✓ FAR: (74) Aug2015 ~~ (74) Oct2015 ~~ (79) Jun2016
✓ BEC: (77) Apr2015
REG: ___

[MaLoTu]

Can anyone explain this to me, it is about income tax accounting:

Quinn Co. reported a net deferred tax asset of $9,000 in its December 31, Year 1, balance sheet. For Year 2, Quinn reported pretax financial statement income of $300,000. Temporary differences of $100,000 resulted in taxable income of $200,000 for Year 2. At December 31, Year 2, Quinn had cumulative taxable differences of $70,000. Quinn's effective income tax rate is 30%. In its December 31, Year 2, income statement, what should Quinn report as deferred income tax expense?
a. $30,000
b. $21,000
c. $12,000
d. $60,000
Explanation

Choice “a” is correct, $30,000. Deferred tax expense is equal to the current period temporary differences times the enacted future tax rate: $100,000 × 30% = $30,000.

[Nessie]

These are accrual:

Internal service fund
Airport enterprise fund
Pension trust fund

REG Aug 20/15: 88
AUD: Feb 29/16: 80
FAR: Jun 10/16: 80
BEC?

Becker self-study, Becker Final Review & NINJA MCQS

[MaLoTu]

@sherif – it is 3 because debt service, special revenue, capital projects, and the general fund all use modified accrual. I use the mnemonic GRASPP from Becker which is General, special Revenue, a (is just a space keep), debt Service, capital Projects, and Permanent. I also use GRaDS CAPP for the same, but it helps me remember all the Ps better because the fiduciary funds also have 2 P fund names.

[Titleistg0lfer]

@Malotu sorry if i misspell anything as I type from my iPhone. I think the reason it used the 100000 instead of the 70000 is due to the 100000 being accounted for as the only “temporary differences”. The other 30000 I am assuming are coming from permanent differences which are excluded from deferred calculations. Just my thoughts..

REG: 84 (10/5/15)
AUD: 83 (11/23/15)
BEC: 77 (2/27/16) - The bubble sucks
FAR: 90 (7/20/16) - AND DONE FOREVER!!!!!

[Author]

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