[jeff]

Studying sucks- hahahaha. I agree! The wiley books is over 1000 pages, that is about 800 pages too many!

[Anonymous]

I took the exam yesterday. I was not thrilled. I had a ton of way out there MCs on topics I had not covered in depth, I couldn't get a feel for how I was doing on the MCs, 1st sim went well, 2nd went fair/mediocre. I seriously have my doubts about wheather I passed or not. Since it was my last portion and my 1st credit expires at the end of July. My questions are:

Do I begin my review for taking FAR again in early Janurary in the event I do not pass or wait for the result? How much studying would be neccessary? Did anyone else feel like me and then pass?

[jeff]

MacPass – take a break until you get your score…all you can do is wait now.

If you take it again in January, plan on starting from scratch and re-doing your course (or getting another course, which may be warranted).

Just speaking from experience…

[Anonymous]

I just took FAR on Monday and feel exactly the same way. I was getting so pissed because by the 3rd testlet I swear they were putting twists in the question just to trip me up. I was actually disgusted. Ok no one laugh at me, but I actually love taking tests. I am total knowledge junkie, but by the last set of multiple choice questions I was over it. I believe that tests should be difficult and be designed to weed out those who have not put the time in to pass. However, this level of trickery was unwarranted. I could see an LSAT being all convoluted and wordy and try to trip people up because that is how that industry works, but in our industry we should be tested in a manner that allows us to show that we know the material not how crafty we can be. A simple trick like having an answer option that is that is the stated interest and another that is the effective interest and you have to realize which one, something like that I am ok with, but this was absurd.

I want to keep studying too, but I think if I did, my husband would kill me in my sleep.

[OnePointAway]

I think the sims are probably more complicated than the MC questions.

[Anonymous]

kmcauliffe

You scaring me, i am getting on the same boat monday, i am sure you gave it the best shot and i got a gut feeling you did well.

[Patrick909]

“I just took FAR on Monday and feel exactly the same way. I was getting so pissed because by the 3rd testlet I swear they were putting twists in the question just to trip me up. I was actually disgusted. Ok no one laugh at me, but I actually love taking tests. I am total knowledge junkie, but by the last set of multiple choice questions I was over it.”

KM, I took FAR on Monday, too. The 3rd testlet really wore me down…it was not fun, and I was starting to get discouraged (and disgusted, too). I was actually happy to get to a sim.

[TampaAccountant]

Patrick and KM, I've heard from a few very smart people that feel just like you guys! That's good news! it means everyone else did just as well or not, and that keeps you “in the curve” and as long you did well in the rest of the exam, you guys passed!

And it helps me keep things in perspective while I'm taking the exam too, next week!

[jeff]

Curve?

🙂

[Anonymous]

I ain't gonna lie, it's a marathon people. Your going to get done with your second testlet and be exausted, not wanting to go on, thinking there's no hope. Take a deep breath, and say to your self, “Stay calm, remain focused, everyone feels the way you do while taking this test.” Then hit that continue button with Gusto! and scream (metaphorically) at that test with all you got!! You're gonna do this, you're gonna pass, you're gonna get your life back!

Now lets go team, we've got a job to do!

[Anonymous]

aaahahahhahahaha….that was awesome!!! Made my day and what a great attitude! 🙂

[77mgb]

FAR – Prepaid Expenses Problem

Does anybody understand what this is saying…

Bisk question number 2045

On May 1 of the current year, Marno County issued property tax assessments for the fiscal year ending the following June 30. The first of two equal installments was due on November 1 of this year. On September 1, Dyur Co. purchased a four-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 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?

a. 66 2/3% increase in prepaid property taxes and 33 1/3% decrease in property taxes payable

b. 0% increase in prepaid property taxes and 100% decrease in property taxes payable

c. 50% increase in prepaid property taxes and 50% decrease in property taxes payable

d. 33 1/3% increase in prepaid property taxes and 66 2/3% decrease in property taxes payable

The correct answer is d. On September 1, Dyur Co. would have credited two months of taxes from the seller to Property Taxes payable. At the end of September and the end of October, Dyur would have recorded one month of property taxes each month by a credit to Property Taxes Payable. When the payment was made for six months of taxes on November 1, the payment would be for the four months prior to that date that have already been accrued and for the two months that follow the payment date which should be recorded as Prepaid Property Taxes. Therefore, two-thirds of the payment should be allocated to a decrease in property taxes payable and one-third of the payment should be recorded as an increase in prepaid property taxes.

I thought I understood prepaid expenses until now. Seems to me that the seller would have paid the taxes at closing directly to the county for the first four months and there wouldn’t even be any prepaid taxes on Dyur’s books. It says the November 1 payment is for taxes assessed on May 1. Why would making the November 1 payment increase prepaid taxes unless they were stupid and overpaid their taxes? Are they saying the seller prepaid the taxes for the whole six month period and I’m just not getting that? What am I missing here? If someone would be kind enough to maybe explain to me in journal entry form what they are talking about here, I would really appreciate it. Thanks.

BEC-84 AUD-82 FAR-86 REG-82 Ethics-98

[Anonymous]

I used Bisk for FAR and I was confused by this question as well. I don't think I fully understood it either. Anyways, I think this is how they arrived at answer D.):

The seller did not pay the property taxes from what I can tell. That's why the purchase includes “…subject to an allowance for accrued taxes.” Thus part of the purchase was allocated to this property tax obligation the previous seller did not pay. The cash paid would equal the value of the building minus the accrued taxes (two months worth, July & August). A journal entry might look like this:

Building . . . . . . . . . . . . . . b

—Cash . . . . . . . . . . . . . . . . . . . . . . b-t

—Accrued Prop. Taxes Payable . . . . . . . t

The two months following the purchase, before the payment, are a standard accrued expense entry:

Property Tax expense . . . . . . . . e

—Accrued Prop. Taxes Payable . . . . . . . . t

Finally, when they paid the semi-annual installment on November first, an increase in Prepaid Taxes would result as well as a decrease in the previously accrued liability. Here is where it's somewhat unclear (to me) and an assumption is made: property taxes are accrued between January 1 – June 30 and July 1 – December 31. It doesn't matter when the county levies the tax but the accrual period is vague. If the accrual periods are what was aforementioned, then a payment on November 1 would be allocated 2/3 to decreasing an Accrued Payable (July, August, Sept., Oct.) and 1/3 to an increase in Prepaid Taxes (Nov. and Dec.). So the entry here would be:

Accrued Prop. Taxes Payable ((2/3)*payment) . . t

Prepaid Prop. Taxes ((1/3)*payment) . . . . . . . . p

—Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t+p

I'm not sure if this helps but that's how I was able to rationalize the answer. I will add that the Prepaid Expenses and related Liability problems from Chapter 7 in Bisk were much harder than what was actually on the exam.

EDIT: It says Marno assessed taxes on May 1 for the period ended June 30; presumably this covers the period from January 1 – June 30. The assessment (payment) on November 1 would then cover the period of July 1 – December 31, supporting the answer above.

[Patrick909]

I remember that question. I struggled with that one too at first, but that is a prime example of a question worded in a really confusing way. The ridiculous thing is, once you get a handle on what they are getting at, it's a pretty simple question.

Basically, you're paying for a full 6 months of taxes (7/1-12/31) on the first day of the 4th month (11/1). So then you'd have a prepaid for 2 months out of the 6 (1/3 or 33 1/3%), and your payable would have decreased for the 4 months 7/1-10/31.

So conceptually simple, yet worded in such a confusing way.

I should also add….having studied with Bisk for 3 sections now, the theory questions you get are almost always more difficult than what you'll find on the actual exam. Still, they are good practice.

[therb]

Whoa, just retook FAR yesterday. I had studied again with Becker Review, which I thought was perfect for anyone who failed and was immediately trying to take it again. I got a 74 when I took it end of August, but I was in the midst of retaking REG so I had to wait an extra few weeks to retake it. I felt well prepared going into the test yesterday, and I STILL thought it was difficult. The 3rd testlet was ridiculous. I managed my time perfectly though and wrote too gangster written communications, so hopefully it was enough for ONE MORE POINT!!

Starting to study for AUD on monday… I'm going to get REG & FAR scores back right around the day I take it, and therefore I COULD be a CPA by thanksgiving baby!

BEC 75 - REG 74, 88 - FAR 74,89 - AUD 92

DONE FOREVER

[Anonymous]

I took FAR this morning. Soo glad that one is done. I have REG 11/30.

[Author]

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