[jeff]

NINJAs,

I don’t like missing people’s questions here on the forum, but I’m sure that I do – especially when I don’t re-visit a thread.

So – I’m trying something new.

If you have a question for me, please post it here.

Some loose guidelines, please:

– Please don’t post a customer service question here.

Instead, please email support@another71.com and we’ll jump on it.

– Please keep your question to 3 sentences or less.

It keeps you from spending your time writing a novella, when that time is better spent studying. It helps me to quickly get to the “heart” of question.

– Please make your question study advice/study tip related (not technical or MCQ related).

…Something that I can quickly answer vs needing to go research a technical CPA Exam question.

If it’s a NINJA MCQ question…please email it to support@another71.com with a screenshot, the question # and what the question/concern is about the MCQ and I can better address it that way.

– Finally – Please only post in here if you have a question.

I’ll get dizzy sifting through who has a question vs who is responding.

To Your Success,

jeff

[rmoxey]

Hi Jeff,

I took both AUD & BEC before but passed none. The most recent exam was BEC in Jan 2017. When I found out I failed (again) I switched to studying for Audit but don't feel prepared to take it during the current window so no exam date scheduled yet. With the new exam changes and since I haven't passed any as yet, which section do you recommend that I start with?

[jeff]

@rmoxey

“Hi Jeff,

I took both AUD & BEC before but passed none. The most recent exam was BEC in Jan 2017. When I found out I failed (again) I switched to studying for Audit but don't feel prepared to take it during the current window so no exam date scheduled yet. With the new exam changes and since I haven't passed any as yet, which section do you recommend that I start with?”

If it were me – I would take BEC since they will still be figuring things out score wise and SIM-wise. I can't really articulate why per se, but I think being one of the guinea pigs is advantageous vs waiting until later.

[Block-a_08]

Hey Jeff,

I am using both NINJA MCQ/SIM and CPAExcel and have noticed that for journal entry SIMS in NINJA to get the answer correct zeroes must be put in the blank spaces and “blank” must be put in blank J/E lines but I have run into some journal entries in CPAExcel where nothing is put in the blank spaces and the answer is correct. What is the correct entry on the exam for journal entry SIMS? Also, if an entry is not required should anything be filled in except “no entry required”?

[I’dlovea75]

Hi Jeff,

How do you suggest we allocate time for the new AUD exam? 2 hours for MCQ 2 hours for TBS?

Thank you!

[emackCPA]

I bought the MCQ for BEC. I do not see the extra lectures to set off for the no sims. Where do I access these lectures?

[jeff]

@Block-a_08

Hey Jeff,

I am using both NINJA MCQ/SIM and CPAExcel and have noticed that for journal entry SIMS in NINJA to get the answer correct zeroes must be put in the blank spaces and “blank” must be put in blank J/E lines but I have run into some journal entries in CPAExcel where nothing is put in the blank spaces and the answer is correct. What is the correct entry on the exam for journal entry SIMS? Also, if an entry is not required should anything be filled in except “no entry required”?

Different softwares do it differently. This has been much-discussed (https://cse.google.com/cse?cx=000715581689434145566:sgpiovmw43k&q=sim%20spaces%20blank&oq=sim%20spaces%20blank&gs_l=partner.3…2582.5204.0.5452.0.0.0.0.0.0.0.0..0.0.gsnos%2Cn%3D13…0.2713j760501j16..1ac.1.25.partner..0.0.0.#gsc.tab=0&gsc.q=sim%20spaces%20blank&gsc.page=1) and I'm not sure that there's been a conclusion reached on a best practice. I will ask the AICPA. In the meantime, I would do the practice sims at AICPA.org.

@I’dlovea75

“Hi Jeff,

How do you suggest we allocate time for the new AUD exam? 2 hours for MCQ 2 hours for TBS?

Thank you!”

It's hard to give a time allocation on the front end – because you need to move as quickly as possible, but the MCQs take what they take – it's not as if you're going to skip some because the time budget is up.

SIMS are different … you need to keep a pace and if there is budgeted time left to mess around with a trouble spot before moving on, you can.

If there's 2 hours left … then take 120/8 and that's the amount of time you have per sim. If you end sooner – tack that on to the next if needed … and so on.

@emackCPA

“I bought the MCQ for BEC. I do not see the extra lectures to set off for the no sims. Where do I access these lectures?”

It's under “Helpful Links” after you login.

“Video – BEC SIM Strategies”

[Anonymous]

HAve you ever seen anyone improve their score in far by 22 points from their first try to first retake? I mega bombed.

[QueenCPA]

Hi Jeff!

I plan to take the CMA 1 exam before I take my *hopefully* final exam, FAR.

Which CMA materials are the best in your opinion?

I believe you are also a CMA.

[fblessed777]

Hi Jeff,

I really need your help in calculating A/R turnover ratio, Which one shall I use in the exam? Net average A/R or Gross average A/R? I see some says Net others say Gross.

Thanks,

fblessed

[jeff]

@Audarah

“HAve you ever seen anyone improve their score in far by 22 points from their first try to first retake? I mega bombed.”

Yes – there's been many “2_ points” threads over the years. Here are some:

Edit: I had 5 links, but the link previews made the post unreadable, so I'm posting the one that's most complimentary of me 🙂

You can search for more in the Search Box (increased score by 20 points … 21 points … etc)

https://www.another71.com/cpa-exam-forum/topic/a-thank-you-to-jeff-24-points/

@QueenCPA

“I plan to take the CMA 1 exam before I take my *hopefully* final exam, FAR.

Which CMA materials are the best in your opinion?

I believe you are also a CMA.”

I'm not a CMA … I may do it someday for kicks, but the CPA Exam keeps me plenty busy. I don't have an opinion on CMA materials – but there's been several posts – the Search Box will help.

I would finish FAR (and pass) before starting the CMA if it were me. Finish one journey before starting the next.

@fblessed777

“I really need your help in calculating A/R turnover ratio, Which one shall I use in the exam? Net average A/R or Gross average A/R? I see some says Net others say Gross.”

On the CPA Exam, I don't think it will make a distinction…it will give you beginning and ending balances. I briefly went through the AICPA BEC questions that had this and they didn't make the distinction.

[SallyCPA]

Jeff,

Do you still recommend re writing your notes for FAR considering the new format if you have enough time? Or would you be better off working through sims and MCQ?

[fblessed777]

@Jeff Thanks for your response.

[jeff]

@SallyCPA

“Jeff,

Do you still recommend re writing your notes for FAR considering the new format if you have enough time? Or would you be better off working through sims and MCQ?”

I haven't changed my outlook on study structure due to the new exam. My only change would be that in the past I wasn't a huge fan of practicing sims (the concepts in the MCQ translate to the sims and you know you're going to get MCQ over a topic, but not necessarily a sim and it's hard to guess which ones to practice), but I have softened my stance on the MCQ to SIMS ratio. In the past I was maybe 90/10 MCQ/SIM…now probably 80/20 75/25 … that's just my take – everyone is different and should do what they are most comfortable with.

If you have time – re-writing is a great way to re-learn the material…but only if you have time – at least a week – to devote to it before a 1 week final review.

[hang.bui]

On January 1, 20X1, Dallas, Inc., purchased 80% of Style, Inc.'s, outstanding common stock for $120,000. On that date, the carrying amounts of Style's assets and liabilities approximated their fair values. During 20X1, Style paid $5,000 cash dividends to its stockholders. Summarized balance sheet information for the two companies follows:

Dallas Style
12/31/X1 12/31/X1 01/01/X1
——– ——– ——–
Investment in Style (equity method) $132,000
Other assets 138,000 $115,000 $100,000
Common stock 50,000 20,000 20,000
Additional paid-in capital 80,250 44,000 44,000
Retained earnings 139,750 51,000 36,000
The combination is accounted for as an acquisition (initiated in a fiscal year beginning after December 15, 2008). What amount should Dallas include from Style as part of consolidated net income in its 20X1 income statement?

A.
$12,000

B.
$15,000
C.
$16,000

D.
$20,000

Answer is D but the explanation is for C. Please explain or fix it

Style, Inc., the subsidiary, reported 20X1 earnings of $20,000 (see below):

Retained Earnings (01/01/X1) $36,000
Plus 20X1 Income ?
Less 20X1 Dividends (5,000)
——–
Retained Earnings (12/31/X1) $51,000
========
Dallas, Inc., the parent, includes 100% of Style's earnings: $20,000. The noncontrolling interest in the subsidiary net income $4,000 (20% of $20,000) is then subtracted from the combined entity's consolidated net income to derive the parent's interest in consolidated net income.

[jeff]

This should help: https://www.another71.com/cpa-exam-forum/topic/net-income-calculation-of-an-80-owned-subsidiary/

[Author]

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