BEC Study Group Q4 2014 - Page 44

Viewing 30 posts - 1,291 through 1,320 (of 1,326 total)
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  • #626943 Reply
    Anonymous
    Inactive

    Johnny, just go to Prometric link NOW before they close those testing centers today, LOL.

    I did the same thing last night, so I am testing on 12/6.

    #626944 Reply
    johnny_debt
    Member

    @Amor D, I'm not going to reschedule all my exams, but its good to know that we can take an exam in December. I just tried a trial reschedule and all my test centers don't test in December. It must be something offered outside of my area.

    #626945 Reply
    Kathy2014
    Participant

    BEC tomorrow. Got 75% on the 1st Becker sample exam. I do not think I am ready for the exam. Are there many variance questions in the real exam? How do you budget your time during the 3 hour exam? Any advice?

    #626946 Reply
    BEACPA
    Participant

    Greetings Future CPAs,

    I'm writing to ask a question on the multiplier effect from a Becker perspective. In B5, on page 11, they state that the formula is 1/(1-MPC). I tried to apply this to the MCQ CPA-8312 (shown below) and I don't see how it applies. It is as if Becker left something out of their formula. Could any one help me with this? Thank you in advance for your time!

    The full-employment gross domestic product is $1.3 trillion, and the actual gross domestic product is $1.2 trillion. The marginal propensity to consume is 0.8. When inflation is ignored, what increase in government expenditures is necessary to produce full employment?

    Cheers,

    BEACPA

    #626947 Reply

    Smart Co. uses a static budget. When actual sales are less than budget, Smart would report favorable variances on which of the following expense categories?

    Sales commissions Building rent

    A. Yes. Yes

    B. Yes No

    C. No. Yes

    D. No. No

    The answer was so vague on wiley. Can someone please explain it to me? Thz a lot!!

    #626948 Reply
    johnny_debt
    Member

    @NeverGiveUpCPA,

    IS the answer B?

    When compared to a static budget, the budget doesn't change hence static. Since they sold less than the static budget, the they will pay less sales commission because commissions are usually variable cost and are dependent on completed sales.

    Building rent won't change because its a fixed cost.

    #626949 Reply
    johnny_debt
    Member

    @BEACPA,

    Full employment is $1.3 trillion, but the actual GDP is $1.2 trillion. Therefore we are looking for an increase in investment (government expenditure) which after the multiplier effect will increase actual GDP by $100 billion.

    The formula 1/(1-MPC) is the multiplier. So by plugging in the MPC from the question of 80%, we get the formula 1/(1-80%) which is 1/(.2) = 5. Therefore each dollar of additional government expenditure/investment would increase GDP by 5 dollars.

    In order to increase GDP by $100 billion we would need additional GDP government expenditures of $20 billion (100/5).

    #626950 Reply
    BEACPA
    Participant

    @johnny_debt

    Thank you very much for taking the time to explain this to me. You did a great job at breaking it down into manageable pieces that flowed logically into the ultimate solution. You would be a great asset to Becker's team of instructors. Thank you again and have a Happy Thanksgiving!

    Peace,

    BEACPA

    #626951 Reply

    @johnny_debt yes u r correct.

    Thz for explaining it to me. I can tell u r ready for the exam!

    #626952 Reply
    oblio
    Member

    Packet filtering is often part of a firewall program for protecting a local network from unwanted intrusion.

    #626953 Reply
    johnny_debt
    Member

    @NeverGiveUpCPA,

    Not sure I am ready, but do we ever feel ready for these things? Hopefully I do well.

    Good luck all!

    #626954 Reply
    kappa1032
    Participant

    great explanation @johnny_debt! I was having trouble with Becker's explanation

    #626955 Reply
    Ssbknyc
    Member

    Looking to start studying for BEC.. Any advice? I'm planning on studying dec1 and want to take the exam early jan..is this doable?

    #626956 Reply
    icandoit
    Participant

    Hi everyone,

    I failed BEC. I studied with Wiley textbook and Online Testbank (tried two times).

    I don't know as to how I can get a passing score for this exam. I thought I passed… But the score was horrible. Since I can't spend much on study materials, which course review or material do you recommend?

    AUD - 72
    BEC - 92
    FAR - 75
    REG - 77
    I can do everything through him who gives me strength [Philippians 4:13]
    #626957 Reply
    Future Ninja
    Participant

    @icandoit try Ninja MCQ and Ninja BEC Book. I am using it for Q1 2015 BEC test.

    #626958 Reply
    krokofilen
    Member

    This is one hell of a long wait for Dec 9.

    I walked out of the prometric centre with a feeling that I had passed BEC. Not sure if that's good or bad, since I have not been anywhere close to as positive after FAR, REG or AUD. So very exciting to see what the outcome will be.

    I studied for 2.5 days.

    #626959 Reply
    Star86
    Participant

    Does anyone have a good example or definition of an object-oriented database? I've tried Googling it, but can't seem to locate a description that's in layman's terms. Thanks.

    #626960 Reply
    youngh
    Member

    Anyone use Becker to study for this, and completely bomb the 2nd practice exam? That thing was insane, I was averaging high 80s and 90s on the progress tests, got a 76 average on the first practice exam, and then I get hit like a truck with the second one..

    #626961 Reply
    knotworthy91
    Member

    @youngh

    same exact thing happened to me. There were questions on there that were absurd and didn't even seem relevant to the Becker material. I've been doing well on the progress tests as well, so that's keeping the confidence high. Those seem to replicate the exam experience much more than the final exam does.

    I've only taken one exam so far, but from my experience on that one and from what I've always heard, the average person does much better on the actual exam than the Becker final exams.

    #626962 Reply
    Anonymous
    Inactive

    Can someone help me with this? Thanks.

    Does payback method take salvage value into account in calculating cash flows?

    Here's what my book says and the last sentence in all caps below is getting me confused:

    Fact No. 1: Salvage value is specifically considered as part of payback computations because it contributes to the incoming cash flow when the asset is sold.

    Fact No. 2: Payback and bailout payback do not consider the TVOM or the return after the initial investment is recovered. THE DIFFERENCE BETWEEN THE TWO METHODS IS THAT BAILOUT PAYBACK TAKES SALVAGE VALUE INTO ACCOUNT IN CALCULATING CASH FLOWS.

    #626963 Reply
    mtwst113
    Member

    @Amor D – The payback method does NOT take into account future cash flows. I studied Becker and haven't heard of the bailout method.

    #626964 Reply
    Anonymous
    Inactive

    CPA-04836

    Which of the following statements is true regarding the payback method?

    a.

    It is the time required to recover the investment and earn a profit.

    b.

    It is a measure of how profitable one investment project is compared to another.

    c.

    The salvage value of old equipment is ignored in the event of equipment replacement.

    d.

    It does not consider the time value of money.

    Explanation

    Choice “d” is correct. The payback method determines the number of years that it will take for a company to recoup or be paid back for its investment. The payback method does not consider the time value of money.

    Choice “a” is incorrect. The payback method determines the number of years that it will take for a company to recoup or be paid back for its investment. Although the payback method focuses on liquidity, project cash flows after the initial investment are not considered; thus, profitability is ignored.

    Choice “b” is incorrect. The payback method determines the number of years that it will take for a company to recoup or be paid back for its investment. Although the payback method focuses on liquidity, project cash flows after the initial investment are not considered; thus, profitability is ignored.

    Choice “c” is incorrect. Salvage value is specifically considered as part of payback computations because it contributes to the incoming cash flow when the asset is sold.

    #626965 Reply
    mtwst113
    Member

    Yep D is correct..since the payment method doesn't take into account the time value of money, it would not account for future cash flows.

    #626966 Reply
    Anonymous
    Inactive

    I got it from Becker. It may be because I am still using V1.0. I don't want to switch to V2.0 since I already started the prior version.

    Anyway, I just want to get clarification as to rather or not PBM uses salvage value in payback computations.

    Thanks.

    #626967 Reply
    mtwst113
    Member

    PBM does not account for the TVOM or future cash flows, that is why the PBM would not consider Salvage Value (which would be collected at the end of the asset's life)

    #626968 Reply
    Anonymous
    Inactive

    @mtw

    Thanks for helping me get this straight.

    But the “bailout payback” you said is nowhere found in CPA. LOL.

    Never mind! It's probably from CFE, EA, EK, EKAK, whatever.

    Thanks again.

    #626969 Reply
    mtwst113
    Member

    I was saying I haven't heard of the Bailout method. Didn't see it on the exam either.

    #626970 Reply
    win2bet
    Participant

    I just started studying this a couple days ago after finishing REG and damn is this a slow tedious read, this coso internal control & just simply reading past couple pages of posts in here it looks like I'm in for a battle

    ,
    #626971 Reply
    Future Ninja
    Participant

    @win2betmore i'm with you. I just started B1 and it looks like this is not a very easy subject.

    #626972 Reply
    Future Ninja
    Participant

    did you know that:

    SOX = REQUIRED public companies to have an Audit Committee

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