BEC – Do I have to memorize all the formulas?

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This topic contains 5 replies, has 4 voices, and was last updated by  icandoit 1 week, 3 days ago.

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  • #2622837

    icandoit
    Participant

    Hello, I am studying BEC now, Financial management topic in particular (B2 in becker) I found some FAR materials overlaps with BEC. But still financial management topic takes too Long time to understand eventhough it's only been one month since I took FAR. Especially, security valuation ratios like P/E ratio, PEG ratio and price to book ratio etc, are just too confusing to me to understand. I started studying BEC with this Financial Management chapter. Is the Financial managemnt considered the most difficult topic in BEC? I dont like security valuation formula…

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - 75
    REG - 77
    I can do everything through him who gives me strength [Philippians 4:13]
    #2623353

    JFKGY
    Participant

    Not sure how much BEC had changed since I took the exam a while back (before it was changed). Back in my time, it's not necessary to remember every single formulas, only the most popular ones.

    It's not necessary for you to memorize all of the details and understand them, however, you should know how the effects of the most popular ones (the questions will likely be either calculations or if XX ratio had increase and XX ratio decrease, what will happened).

    Financial management is not the most difficult topic for me (everyone has a different weak point). It just sounds like to me you might be weak at it because you don't personally hold any financial accounting work experience (like reading the balance sheet and doing analyst). If this is simply a formula and ratio problem, one thing you could do is download any model financial reports, plug it into excel, write out all the formulas, and play around the numbers to observe why there's a +/- in all the ratios.

    NY - Passed CPA. In searching for the experience.
    #2625366

    bmj2s
    Participant

    I would be somewhat familiar with them, for the mcqs.

    They are provided for the SIMS.

    AUD - NINJA in Training
    BEC - 82
    FAR - NINJA in Training
    REG - 76
    Gotta get this done!
    #2625534

    ak_cpawannabe
    Participant

    I would say yes! Memorize them so you are absolutely proficient in them. I wrote out every formula/ratio when I was going over the material and at the end it was close to 100 of them on 3 double sided pages. So 1 week before test I started learning and memorizing maybe 10-15 a day. Like really memorizing. Next day I would repeat the old ones and learn new ones. I don’t know how people can pass test by lightly understanding ratios and formulas. Prepare yourself for this test like it’s a war:) it is really a tough test.

    AUD - 78
    BEC - 77
    FAR - 78
    REG - 87
    “If it wasn’t hard, everyone would do it. It’s the hard that makes it great” Tom Hanks
    #2625645

    JFKGY
    Participant

    I would prepare a cheat sheet and bring it to the test center, read it at the last moment and throw it away. First thing you do when you get to the test is write out every formula on the scrap paper!

    With limited time to study, I temp to prioritize everything else except the formulas. In a lot of questions, you often get “A forgot to record X amount of inventory, what happened?.” I would assume an original amount (whatever amount that's easiest to round up and calculate), and actually calculate the impact (if the ratio become bigger or smaller). The pro is you don't need to know a whole lot to KO the question, the cons is you have to be fast, quick thinking, and be good with math (or know how to use a calculator!)

    NY - Passed CPA. In searching for the experience.
    #2628729

    icandoit
    Participant

    thanks all for the valuable responses/opnions about my question. @JFKGY yes, I did the same thing for FAR exam. But I remember FAR has less formulas than BEC. I would definetely do that again before I enter the test room for BEC. I've never done the flashcards before and I noticed Becker has flashcards feature. I don't know if doing flashcards is waste of time since I make my own notes as well. I've only done B2 financial management so far and maybe it is only the tip of the icerberg of overall BEC difficulty.

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - 75
    REG - 77
    I can do everything through him who gives me strength [Philippians 4:13]
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