[Kirito]

Hi, I’ve yet to take any section. I’ll do some in late summer. I’m reviewing early with Gleim, what my professors use. I’m not faulting gleim, because I think they’re just making the questions to reflect what we’ll be tested on. But I keep coming across questions that I think are stupidly worded. I understand the material or the concepts yet I don’t know what they’re asking. I think I’ll make a compilation of them. I welcome anybody to add to this thread with badly or confusingly worded questions. They are points we shouldn’t get wrong. Here’s one that came up for me from FAR.I hope I’m not breaking copyright. I do recommend purchasing Gleim. i think they’re great and they have great customer service and are affordably priced.

At the beginning of Year 1, Cody Construction began work on a 3-year construction contract. This contract is accounted for by the percentage-of-completion method for financial accounting purposes and the completed-contract method for tax purposes. During Year 1, Cody reported $800,000 of income from this contract. However, because of cost overruns incurred in Year 2, Cody reported a $500,000 loss from this contract. Cody’s Year 2 balance sheet should include a

Deferred Tax Asset Deferred tax liability

yes yes

No no

Yes no

no yes

Well I got this wrong not because I didn’t understand the concept or the math, but because I didn’t understand the language. I know understanding the language is a big part of accounting but I’m not sure this is technical language. I didn’t know if it meant he reported a 500k loss overall, that means 1300 in year two, nettted against the 800 making it 500. They never specify. Now if it’s language we have to know, that’s one thing, and I don’t even mind them being tricky, but sometimes I feel like it comes down to guessing what they mean. Is that just me? I could compile multiple questions like this. It seems unfair to get a question wrong when you know how to arrive at an answer if you have sufficient information.

How can we master this?