[Herbieherb]

hi

I went to the aicpa sample test to play around with the calculator and spreadsheet…I put in this as present value

=PV(.04,20,0,-400000,0) which supposed to be like the present value of 1 $ for 4% for 20 periods for 400,000. Formula works in Excel. 182554…but on the AICPA spreadsheet I get 8480517. I must be missing something???

The value that came out from their spreadsheet wasnt the amount I was looking for. Anyone know what im doing wrong in my formula? I dont want to be off guard if I get a sim regarding PV and they dont give me the tables! TIA.

NEW YORK- DONE

[Anonymous]

I don't think you can use their spreadsheet for the excel type formulas. I think the spreadsheet, what I've seen of it works more like a handheld calculator. So basically you'd have to do a PV formula like using a calculator. For example the PV of $1 at 10% for 5 periods is .683 so you'd take the amount ($500,000 in this case) and multiply it by the .683 to get $341,500.

The sample spreadsheet is a spreadsheet in name only, it lacks true functionality.

[Anonymous]

I don't think you can use their spreadsheet for the excel type formulas. I think the spreadsheet, what I've seen of it works more like a handheld calculator. So basically you'd have to do a PV formula like using a calculator. For example the PV of $1 at 10% for 5 periods is .683 so you'd take the amount ($500,000 in this case) and multiply it by the .683 to get $341,500.

The sample spreadsheet is a spreadsheet in name only, it lacks true functionality.

[Herbieherb]

hah this is an old subject…while I was taking my actual FAR exam for Kicks I tried using the spreadsheet function with the present value…and it did the same thing, some wierd number popped up that I wasn't expecting…then I WIDENED the spreadsheet Column and there it was 🙂 LOL it works, just widen the column PRESTO!

NEW YORK- DONE

[Herbieherb]

hah this is an old subject…while I was taking my actual FAR exam for Kicks I tried using the spreadsheet function with the present value…and it did the same thing, some wierd number popped up that I wasn't expecting…then I WIDENED the spreadsheet Column and there it was 🙂 LOL it works, just widen the column PRESTO!

NEW YORK- DONE

[happy75]

Thank you for the valuable information, Herbieherb.

I have to conquor FAR next and I need all the help I can get.

BTW, congratulations on passing all sections!!

[happy75]

Thank you for the valuable information, Herbieherb.

I have to conquor FAR next and I need all the help I can get.

BTW, congratulations on passing all sections!!

[Last_First_MI]

Why would you bother? The PV figures are given to you in the test.

[Last_First_MI]

Why would you bother? The PV figures are given to you in the test.

[Herbieherb]

My review course instructor said the exam doesn't need to provide the tables. Since the function is there its considered fair game. Better to be safe than sorry right? When has this exam been predictable?

NEW YORK- DONE

[Herbieherb]

My review course instructor said the exam doesn't need to provide the tables. Since the function is there its considered fair game. Better to be safe than sorry right? When has this exam been predictable?

NEW YORK- DONE

[Accounting Pilot]

Keep in mind answers could be slightly different (but not significantly) because of rounding. Tables use rounding where the function should not.

Best to memorize the formulas*. I can punch out time value of money equations on my finance calculator faster than using the calculator's built-in functions.

*I am completely kidding. Unless you are that special breed of accountant (who has trouble finding dates, even with other accountants) that loves TVM don't do this.

EDIT:

And yes, better to be safe than sorry.

Wisconsin Candidate. NTS 450
BEC - 82 AUD - 85
FAR - 83 REG - 71, 86

[Accounting Pilot]

Keep in mind answers could be slightly different (but not significantly) because of rounding. Tables use rounding where the function should not.

Best to memorize the formulas*. I can punch out time value of money equations on my finance calculator faster than using the calculator's built-in functions.

*I am completely kidding. Unless you are that special breed of accountant (who has trouble finding dates, even with other accountants) that loves TVM don't do this.

EDIT:

And yes, better to be safe than sorry.

Wisconsin Candidate. NTS 450
BEC - 82 AUD - 85
FAR - 83 REG - 71, 86

[Last_First_MI]

I guess it is better safe than sorry but my review course told me to not worry about it, and it allowed me to pass all exams in about six months on the first try. I am also pretty sure unless you are going for the Watts Sells Award then I am sure if you missed that one you will be fine and if you did get that in a sim or a mc then everyone else who got it, missed it also and it will be thrown out.

I just don't see a reason to waste your time on something that in the past and in most mc questions and sims on most review software has provided these figures. Why put more crap in your head when it is already jumbled with all the other crap that FAR has to offer? We aren't mathematicians we are accountants we really only know how to add, subtract, divide, and multiply. 🙂 And the AICPA usually will accommodate this downfall for us.

[Last_First_MI]

I guess it is better safe than sorry but my review course told me to not worry about it, and it allowed me to pass all exams in about six months on the first try. I am also pretty sure unless you are going for the Watts Sells Award then I am sure if you missed that one you will be fine and if you did get that in a sim or a mc then everyone else who got it, missed it also and it will be thrown out.

I just don't see a reason to waste your time on something that in the past and in most mc questions and sims on most review software has provided these figures. Why put more crap in your head when it is already jumbled with all the other crap that FAR has to offer? We aren't mathematicians we are accountants we really only know how to add, subtract, divide, and multiply. 🙂 And the AICPA usually will accommodate this downfall for us.

[Anonymous]

what if we calculate the PV of $1 factor ourselves because it's not given in the PV tables, it's off by a decimal place due to rounding, so our bond carrying amount is off the true AICPA answer by a few bucks? And since the CPA exam is computer-graded, wouldn't that be a problem?

[Author]

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