[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

[Claudia408]

yes that is my opinion! and now you say SIMs are easier – i really hope so!

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

[marqzho]

Claudia

How're you doing so far? last week for review.

REG 90
FAR 95
AUD 98
BEC 84

[Trele6]

One of the sims was over hedging/ derivatives. Becker goes over it but it seems they emphasized the theory and concept. Sim wanted the minutiae of it. Caught me off guard. 16 calculation boxes. I literally guessed and just dumped info into each box so it wouldn't be blank. Let's hope 0 is a valid answer for a lot of them. 😉

First go at the CPA! Only using Becker
Reg / Nov 2015 - 87
Far / Apr 2016 - 79
Bec / May 2016 - 80
Aud / Aug 2016

[Zyx]

I don't understand why the idle machine is included in net assets. Isn't it overstated assets if it's idle?

When preparing a draft of its 20X1 balance sheet (statement of financial position), Mont, Inc., reported net assets totaling $875,000. Included in the asset section of the balance sheet were the following:

Treasury stock of Mont, Inc., at cost, which approximates
market value on December 31, 20X1 $24,000
Idle machinery 11,200
Cash surrender value of life insurance on corporate executives 13,700
Marketable equity investments classified as trading securities,
valued at fair value 8,400

At what amount should Mont's net assets be reported in the December 31, 20X1, balance sheet (statement of financial position)?

A.$851,000
B.$850,100
C.$842,600
D.$834,500

ANS: Total net assets $875,000
Less Treasury stock 24,000
——–
Net assets reported on balance sheet $851,000
Idle machinery, cash surrender value of life insurance on corporate executives, and marketable equity investments valued at fair value should appear in the asset section of the balance sheet (statement of financial position).

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

[Claudia408]

marqzho – not ready but hoping to get some fair SIMs so that i have a fighting chance.

trele6 – that's not cool! I have Roger and Wiley and both go over the concept too, no practice calcs!!! Where would you even begin!? This is not the CFA!

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

[Spartans92]

Good Luck next week Claudia! I just picked FAR back up today so I am not losing the stuff while waiting for the scores. The wait is so painful. I just want that 75 and move on.

BEC- PASS

[Claudia408]

Thanks Spartans! The wait sure is the worst right? Are you starting Reg now? Hey I'm taking my Reg retake next so I'll see you in that forum next week! Is that good or bad! LOL

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

[Spartans92]

LOL I actually moved REG to July 15 and taking BEC on June 10 instead. I figured its best to keep FAR fresh and BEC shouldn't be hard to study for haha. I rather know my score immediately and I can study for the retake instead. You got this! I would say the SIMS are very hard to study for, keep doing MCQ and have those knowledge build up which will help on the SIMS. It's just unpredictable to know what will be on them so even doing the ones on Becker was not very helpful except the research.

BEC- PASS

[Claudia408]

BEC financial mgmt and cost accounting is just as bad as FAR, so yes that is a good idea! why aren't you trying to knock out Audit? its got the least amount of material…

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

[Spartans92]

A nongovernmental not-for-profit organization borrowed $5,000, which it used to purchase a truck. In which section of the organization's statement of cash flows should the transaction be reported?

The Jackson Foundation, a not-for-profit organization, received contributions in Year 1 as follows:
Unrestricted cash contributions of $500,000.
Cash contributions of $200,000 to be restricted to acquisition of property.
Jackson's statement of cash flows in Year 1 should include which of the following amounts?

So I am reviewing NFP and I noticed these two questions are similar (kinda)..the first one says nongovernmental and the second one just says NFP assuming its govt. So if its govt NFP purchasing of capital asset is reported in financing activity? While if it is nongovernmental, commercial format is used and purchase of asset is investing? Or what else am I missing, why is one investing and the other financing? Both are purchase of property.

BEC- PASS

[Spartans92]

Claudia, Im very weak with Financial stuff and that is what killed me on the SIMS last time for AUD. I just want to get more practice on the JE first. I already have all my sections paid for at the moment and I want to get those done with before rescheduling for AUD.

BEC- PASS

[JT]

Hey guys… How do you guys remember all of the capitalize vs expenses for IT and financial?

Specifically like patents, development cost, planning design and testing, construction loan interest, land cost, equipment cost, before/after detailed program design, etc.

I have a cheat sheet I use but I'm finding it hard to remember it all. Are there useful tricks that are out there to help remember it all?

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

[Aquafairy]

hey guys, just want to make sure i understand why the answer is B and not A

Howe Co. leased equipment to Kew Corp. on January 2, 20X1, for an 8-year period expiring December 31, 20X8. Equal payments under the lease are $600,000 and are due on January 2 of each year. The first payment was made on January 2, 20X1. The list selling price of the equipment is $3,520,000 and its carrying cost on Howe's books is $2,800,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments at an imputed interest rate of 12% (Howe's incremental borrowing rate) is $3,300,000. What amount of profit on the sale should Howe report for the year ended December 31, 20X1?

A. $720,000
B. $500,000
C. $90,000
D. $0

I answered A, but the correct answer is B $500,000

Just want to make sure I understand, we do not use the $3,520,000 because although it says it's the listing price, it was actually sold for PV MLP $3,300,00

The $3,520,000 is a distractor?

[marqzho]

Aquafairy

list selling price is always a misleading info in the exam. An item can be listed 1 million but only is worth $100.

REG 90
FAR 95
AUD 98
BEC 84

[Anonymous]

Has anyone experienced an issue during the simulations where all words within a cell were not visible because it seemed as if the window was zoomed in?

I encountered this issue during my exam yesterday and spent about 20 minutes trying to figure out how to get out of that “mode” only to find out it was a hardware/software issue only for that particular computer at that test location. The employee at prometric said this issue had been identified recently but it was supposed to have been resolved. It seriously messed me up and I ended not coming close to finishing the Sims. Both the Prometric employee and I filed separate instance reports about what happened, but i just wanted to see if anyone had experienced this before?

[Author]

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