[jeff]

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

[mb0363]

@nick lets hope so. this is my second attempt at far and like you, hoping to be done with the CPA forever.

If you guys use Becker i still have to review 5,6,7,2, (most important) 4,1,10 (less emphasis here) & probably in that order too.

I've done 3,8,9.

BEC - PASS
AUDIT - PASS
REG - PASS
FAR - PASS

[Ssbknyc]

Govt Accounting_Deferred Inflows and Outflows

I understand for Govt Wide FS, Proprietary Funds and Fiduciary Funds the FS position is

Assets + Deferred Outflows – Liabilities + Deferred Inflows = Net Position AND

For the Govt Funds

Assets + Deferred Outflows = Liabilities + Deferred Inflows + Fund Balance

However, why would something be considered as an ASSET and DEFERRED INFLOW if deferred outflows are presented with assets before liabilities?

Any thoughts?

Done 08/2014-08/2015

[Anonymous]

@Ss, it wouldn't be considered an asset AND deferred inflow. Do you have a particular question in mind?

[salring]

Am confused about this question,

During the current year, Young and Zinc maintained average capital balances in their partnership of $160,000 and $100,000, respectively. The partners receive 10% interest on average capital balances, and residual profit or loss is divided equally. Partnership profit before interest was $4,000. By what amount should Zinc’s capital balance change for the year?

A. $1,000 decrease

Shouldn't the answer be increase by $1,000 can someone help me understand this?

[Ssbknyc]

@Nick, thanks for responding, I am reading an example from becker and it states

“The state-regulated Progressive Township Electrical Authority has secured approval from the state to increase electric rates in the coming year. The increase is intended to fund system improvements. This incremental increase associated with the approved rate adjustment would be accounted for as an asset and as a deferred inflow.”

Why would we be recording an asset? I think of deferred inflow as “unearned revenue” so it will be in the liability category (correct me if im not thinking about it the right way), however, i dont understand what asset would be recorded.

Done 08/2014-08/2015

[Anonymous]

@ss, I wish I could help you. I was under the impression deferred inflows were classified with liabilities as well.

[Mehwish]

@Sarling, no.

Because after you pay interest interest on their capital accounts you are left with $(22000). That $22,000 loss is spread evenly between both.

So interest of $10,000+ loss of (11,000)= (1000) decrease

[Ssbknyc]

@nick, no worries.. as long as we understand that deferred outflows is presented after assets and before liabilities i think we should be fine.

Done 08/2014-08/2015

[mdlynch3]

The following information was taken from the current year financial statements of Planet Corp.:

Accounts receivable, January 1 $ 21,600

Accounts receivable, December 31 30,400

Sales on account and cash sales 438,000

Uncollectible accounts 1,000

No accounts receivable were written off or recovered during the year.

If the direct method is used in the statement of cash flows, Planet should report cash collected from customers as:

a. $429,200

b. $446,800

c. $447,800

d. $428,200

Answer is A, can someone please help me with the t account on this one? Thank you!

FAR - 84 (11/26/2014)
REG - 82 (5/15/2015)
AUD - 90 (7/20/2015)
BEC - 88 (2/26/2015)

[salring]

@Mehwish, what happens to the $4K, I thought you would allocate $2K to each of them before the $11K ending with a $1K increase?

[Ssbknyc]

@mdlynch3

DR BEG AR $21,600

DR ADD Sales $438,000

CR LESS Collections $429,200 (This is a plug number for this question)

CR LESS Writeoffs 0

End AR $30,400

Uncollectible accounts are not written off yet so not included in calculation

Done 08/2014-08/2015

[Future Ninja]

hey guys what is the correct answer to this question:

Which of the ff is Unrestricted net assets: Is it both or only 1 of the two? Thanks

I. A private not for profit VHWO spent restricted donation received prior year with donor's wishes, the donation was spent on public health education during the current year.

II. During the current year, a private NFP college earned dividends and interest on term endowments. Donors placed no restrictions on the earnings.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[salring]

I think only II is unrestricted, I is restricted and when spent you have a reduction in temporarily restricted assets

[Mehwish]

@Sarling…

Remember, it said the profit before interest was $4000, so after interest net income is (22000). net income is the last thing that is allocated.

The interest on both the accounts combined is $26,000, this interest is going to reduce net income.

so 4000-26000=(22000)

So Z has $10k from interest on his average capital account and a loss of ($11k) from net income, leading to $1k decrease

[Mehwish]

@Future Ninja,

I agree, only 2 is unrestricted.

It says “restricted donations” in the first one. I don't see how that would be unrestricted.

but than again, these problems can be tricky.

What is the answer?

[Author]

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