FAR Study Group Q4 2014 - Page 29

  • Creator
    Topic
  • #188294
    jeff
    Keymaster

    SO I know every test is different but does anyone have any insight on what has been heavily tested recently? I take the exam Monday and I need to narrow my focus….Thanks!

    Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

Viewing 15 replies - 421 through 435 (of 1,629 total)
  • Author
    Replies
  • #627731
    Anonymous
    Inactive

    @rzrbkfaith. Here's what the answer looks like for the first one.

    The key to understanding and correctly solving this problem lies in the fact that the 1,000 contracts were sold evenly throughout 20X1; thus:

    Average “exposure”

    of contracts sold in 20X1 = (100% + 0%) / 2 = 50%

    Total contract revenue for 20X1 = 1,000 x $600 = $600,000

    Less: Revenue earned = 50% x 40% x $600,000 = 120,000


    Deferred service contract revenue on December 31, 20X1 $480,000

    ========

    Again, not really sure what this avg. exposure of contracts sold is about. I get the math, obviously, just not why.

    #627732
    Anonymous
    Inactive

    On January 1, Fonk City approved the following general fund resources for the new fiscal period:

    Property taxes $ 5,000,000

    Licenses and permits 400,000

    Intergovernmental revenues 150,000

    Transfers in from other funds 350,000

    What amount should Fonk record as estimated revenues for the new fiscal year?

    a.

    $5,550,000

    b.

    $5,900,000

    c.

    $5,750,000

    d.

    $5,400,000

    Explanation

    Choice “a” is correct. Revenues include property taxes, licenses and intergovernmental revenues. Transfers would be considered estimated other financing sources. Estimated revenues are:

    Property taxes $ 5,000,000

    Licenses and permits 400,000

    Intergovernmental revenues 150,000

    Total estimated revenues $ 5,550,000

    I selected choice d. $5400,000 because I understand that intergovernmental revenues and transfers in from other funds are estimated other financing sources.

    Can someone please correct me how I am wrong and give the explanation for the correct answer.

    Thanks

    #627733
    IAMCPAIN2014
    Member

    Hi everyone,

    I have a question for you. I've scheduled my FAR Exam for November 29 at noon, which is a Saturday, but my audit exam would expire on November 30th (a Sunday). Do you think I should worry about my FAR score being transferred to NASBA on time?

    Any thoughts would be greatly appreciated.

    Thank you!

    #627734
    IAMCPAIN2014
    Member

    I should also mention that FAR is my last section to pass. Thank you!

    #627735
    Anonymous
    Inactive

    No, you should be fine. Last one with Audit expiring? Good luck! I am going to lose BEC in October which sucks but hopefully I get past this beast.

    #627736
    IAMCPAIN2014
    Member

    Thank you

    #627737
    Anonymous
    Inactive

    I'm struggling a bit to understand the translation and remeasurement section. Any tips?

    #627738
    Anonymous
    Inactive

    The struggle is real and stakes are high

    FAR 71 (2012), scheduled Oct 2014)

    AUD 97 (Apr 2013) expiring Oct 2014!!!

    BEC 79 (May 2013) expiring Nov 2014!!!

    REG 74 (Aug 2013), 71 (May 2014), 75 (Aug 2014)

    #627739
    Anonymous
    Inactive

    On its December 31, 20X1, balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of $15,000 at December 31, 20X0. No estimated tax payments were made during 20X1. At December 31, 20X1, Shin determined that it was likely that 10% of the deferred tax asset would not be realized. In its 20X1 income statement, what amount should Shin report as total income tax expense?

    A.

    $8,000

    B.

    $8,500

    C.

    $10,000

    D.

    $13,000

    #627740
    Anonymous
    Inactive

    Answer is C.

    DR ITE 10000

    Cr ITP 10000

    DR DTA 5000

    CR ITE 5000

    DR ITE 2000

    CR Allowance for reduction of DTA 2000

    #627741
    Mjganier
    Participant

    @CPAHOPEFUL11, what kind of issues are you having in regard to your question?

    FAR 8/18/2014--87
    AUD 10/18/2014--78
    REG 11/24/2014--76
    BEC 2/28/2015--76

    "If you can't explain it simply, you don't understand it well enough"-Albert Einstein

    Study Mats: Cpaexcel study text and EQ, Ninja MCQ, Ninja notes

    #627742
    Anonymous
    Inactive

    So what's a easy way to differentiate from translation to remeasurement?

    I've been trending at 83% but yesterday got a 55% on the “troubling questions.” Well, that certainly isn't good for my confidence with my exam three days away.

    #627743

    Anyone have a great way to remember how to do Stmt of Cash Flows – direct vs. indirect? Struggling with the SIMs right now 🙁

    REG - 87 (Becker)
    AUD - 96 (Becker & Ninja MCQs)
    FAR - 85 (Becker, Ninja MCQs, Audio and Blitz)
    BEC - Last one! Waiting on score release 11/24!

    Remember: a journey of a thousand miles begins with a single step

    #627744
    Anonymous
    Inactive

    Sure, what exactly do you need help at?

    #627745
    Anonymous
    Inactive

    Kent Co.'s advertising expense account had a balance of $292,500 on December 31, 20X1, before any necessary year-end adjustment relating to the following:

    Included in the $292,500 is the $30,000 cost of printing catalogs for a sales promotional campaign in January 20X2.

    Radio advertising spots broadcast during December 20X1 were billed to Kent on January 2, 20X2. Kent paid the $17,500 invoice on January 11, 20X2.

    What amount should Kent report as advertising expense in its income statement for the year ending December 31, 20X1?

    Incorrect A.

    $310,000

    B.

    $280,000

    C.

    $262,500

    D.

    $245,000


    Correct answer is ‘B' and I see how they did it, but my impression from reading the question is that the printing costs were incurred in X1 but the catalogs would be used in X2; the “for a sales promotional in[..]” is kind of ambiguous as to whether they were actually printed in X1 or X2, at least IMO. Is there a tell-tale way of knowing which, because I would hate to get a question wrong on the exam because of something like this.

Viewing 15 replies - 421 through 435 (of 1,629 total)
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