BEC Study Group Q1 2017

CPA Exam Forum BEC BEC Review BEC Study Group Q1 2017

This topic contains 651 replies, has 127 voices, and was last updated by Rosy0407 Rosy0407 2 hours, 4 minutes ago.

Viewing 30 posts - 211 through 240 (of 652 total)
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  • #1435416

    rserrao24
    Participant

    @chasemlewis I'm in the same boat as you (took the exam on 01/07). I had to guess on more questions than I would have liked, but the WC were pretty easy. Only one of them was related to a topic that I'm not too familiar with, but I was able to finish all three with 2 minutes left.


    BEC- 78
    #1435437

    marine
    Participant

    Do you remember your WC topics?


    Marine
    AUD - NINJA in Training
    BEC - 68
    FAR - 76
    REG - NINJA in Training
    #1435440

    chasemlewis
    Participant

    Yeah, I had plenty of time. I probably left with 45 minutes to go. I left AUD with about 1.5hr to go on the exam.

    #1435445

    marine
    Participant

    I think it's normal when you don't feel good about how you did after exam. And guessing on some of MCQ is ok too. Maybe those MCQs and one WC were test/sample. You'll pass! Do you remember your WC topics?


    Marine
    AUD - NINJA in Training
    BEC - 68
    FAR - 76
    REG - NINJA in Training
    #1435472

    jelani1911
    Participant

    I take BEC tomorrow and i feel a bit uneasy. any suggestions or advice you guys can give 24hours before exam day and what your day usually consist of?

    #1435476

    marine
    Participant

    I am trying to review all my notes and remember formulas, ratios. Good luck!!!


    Marine
    AUD - NINJA in Training
    BEC - 68
    FAR - 76
    REG - NINJA in Training
    #1435523

    marine
    Participant

    I am trying to review all my notes and remember the formulas, ratios. Good luck!!!


    Marine
    AUD - NINJA in Training
    BEC - 68
    FAR - 76
    REG - NINJA in Training
    #1435860

    SONA
    Participant

    I AM SORRY GUYS THIS IS PRETTY LONG QUESTION, BUT ANYONE KNOWS THE BETTER METHOD TO COME TO THE SOLUTION. IF I TRY THIS PROBLEM DOING IN EXAM, WILL TAKE MY 45 MIN IN QUESTION. 🙁

    A company currently has 1,000 shares of common stock outstanding with zero debt. It has the choice of raising an
    additional $100,000 by issuing 9% longterm
    debt or issuing 500 shares of common stock. The company has a 40%
    tax rate. What level of earnings before interest and taxes (EBIT) would result in the same earnings per share (EPS)
    for the two financing options?
    A. An EBIT of $27,000 would result in EPS of $10.80 for both.
    Incorrect B. An EBIT of $27,000 would result in EPS of $7.20 for both.
    C. An EBIT of $
    18,000 would result in EPS of $(7.20) for both.
    D. An EBIT of $
    10,800 would result in EPS of $(7.92) for both.
    You answered B. The correct answer is A.
    Management has the choice to obtain financing through either debt or equity. Debt will have taxdeductible
    interest
    associated with it, whereas the sale of additional stock will not result in any taxdeductible
    item since dividends are
    not considered to be a deductible expense.
    The raising of funds through taking on additional debt will result in a lower EAT (earnings after taxes) due to the
    $9,000 of interest expense ($100,000 × 0.09); however, the number of shares will remain at 1,000.
    The raising of funds through selling additional common stock will result in a higher EAT since there will be no interest
    expense; however, since there will be more outstanding shares, the net income will be divided into smaller “pieces of
    the pie” in relationship to the stockholders.
    EPS calculation for use of debt financing:
    EPS = (EBIT Interest
    ((
    EBIT Interest)
    × 0.40)) ÷ Number of shares
    EPS = (EBIT $
    9,000 ((
    EBIT $
    9,000) × 0.40)) ÷ 1,000 shares
    EPS calculation for sales of additional common shares:
    EPS = (EBIT (
    EBIT × 0.40)) ÷ Number of shares
    EPS = (EBIT (
    EBIT × 0.40)) ÷ 1,500 shares
    12/31/2016 bec2016.ninjacpareview.com/PrintPage.aspx?SessionQuestionId=8c2bc0ff93c34ebab17dc84629f0dfd3
    http://bec2016.ninjacpareview.com/PrintPage.aspx?SessionQuestionId=8c2bc0ff93c34ebab17dc84629f0dfd3
    2/2
    The solution for when EPS is equal under each of these financing options can be determined by setting the two
    above equations equal to each other and solving for EBIT:
    (EBIT $
    9,000 ((
    EBIT $
    9,000) × 0.40)) ÷ 1,000 shares = (EBIT (
    EBIT × 0.40)) ÷ 1,500 shares
    1,500 EBIT $
    13,500,000 (
    600 EBIT + $5,400,000) = 1,000 EBIT 400
    EBIT
    300 EBIT = $8,100,000
    EBIT = $27,000
    Proof:
    Additional Debt Additional Stock
    EBIT
    $27,000 $27,000
    Interest 9,000 0
    EBT
    $18,000 $27,000
    Tax 7,200 10,800
    $
    10,800 $16,200
    ======= =======
    Additional debt:
    EPS = Net income ÷ Number of shares outstanding
    EPS = $10,800 ÷ 1,000 shares = $10.80 per share
    Additional stock:
    EPS = Net income ÷ Number of shares outstanding
    EPS = $16,200 ÷ 1,500 shares = $10.80 per share


    Thanks.
    AUD - NINJA in Training
    BEC - 66
    FAR - 74
    REG - 81
    #1436009

    cjbfitmom
    Participant

    Hello,

    new here. Finally decided to take a good shot at CPA studies. I am using 2016 Roger Review and so far I have purchased ninja notes. Putting together a study program for myself now as i want to follow a mix of Roger and Ninja. From the start I can already see that my understanding pace of the material is snail like.

    BEC: ninja in training
    AUD: ninja in training
    REG: ninja in training
    FAR: ninja in training


    P
    #1436199

    anyatver
    Participant

    @SONA-I know this problem by heart!

    the answer is 27,000 EBIT will produce EPS 10.80 with both scenarios:

    Here is the easiest way I know how to solve it and understand it! if they have 27,000 EBIT, and raise debt at 9%, the interest is 9,000. 27,000-9,000=18,000, less 40% tax, net income is $10,800/1,000=EPS 10.80

    If they raise additional shares, then the net income is 16,200 but EPS is now 16,200/1,500 shares=10.80


    Hoping for the best and preparing for the worst!
    AUD - NINJA in Training
    BEC - 82
    FAR - NINJA in Training
    REG - NINJA in Training
    #1436267

    Has anyone taken BEC recently and want to share some tips on what to focus on today as I am taking my test tomorrow.

    #1436270

    SONA
    Participant

    Yes, I have exam tomorrow. Just need some tips the day before the exam.

    I will be going through 150 troubled questions in NINJA MCQ. 4-5 writings Becker.

    Lastly will review ninja notes. I know this might not be enough but i hope for 75.

    Any more tips?

    ALL THE BEST GUYS.


    Thanks.
    AUD - NINJA in Training
    BEC - 66
    FAR - 74
    REG - 81
    #1436273

    SONA
    Participant

    Thanks.
    Finally i decided to go through the answer choices and decide which gives you the best of all.


    Thanks.
    AUD - NINJA in Training
    BEC - 66
    FAR - 74
    REG - 81
    #1436342

    CPYay
    Participant

    Testing tomorrow morning. This one scares me more than the others. For some reason, I struggled with the calculations in the MCQs, whereas I excelled in the concepts. Hoping for no calculations tomorrow!


    Roger/Ninja MCQs all day erryday
    AUD - 92
    BEC - 84
    FAR - 89
    REG - NINJA in Training
    #1436370

    CPASF1
    Participant

    can someone please help me with this corporate governance question please? so i picked A, because the question says that there is no formal receiving function and vendors are paid on actual production meaning if the goods were stolen and not shipped then no one will ever know of them right and it would be harder to tell if they were stolen or not shipped because the lack of audit trail. But i don't understand why it's also B and C? why would shortages of production be brought to supervisor's attention because of production shut downs and why would there be decreasing the opportunities for errors to enter the system, wouldn't there be more errors because of the lack of audit trail? thank you!

    A company controller is concerned that parts may be stolen because there is no formal receiving function (that is, receiving slips are not filled out). Production raw materials are moved from rail cars directly to the production line, and vendors are paid based on actual production. Which of the following comments correctly portrays the current process?

    A.
    Goods can be paid for only if they have been used in production. Stolen goods or goods not shipped will not be paid for.

    B.
    There is less handling of goods received, thereby decreasing the cost associated with processing goods received as well as decreasing the opportunities for errors to enter the system.

    C.
    Shortages of materials in the system will be brought to a supervisor's attention because of production shutdowns.

    D.
    All of the answer choices are correct.

    #1436654

    jelani1911
    Participant

    (edited)

    I just took BEC today and i honestly don't know how to feel. I wrote down most of the formulas before i started the exam and i didn't really even need them. I would say i had mostly conceptual based questions than computational and i didn't have a clear read on if each testlet were getting difficult.

    I'm Praying for a 75!!! and trying not to think too much into it knowing that this was the last shot at BEC before exam changes. Now it's enjoy the weekend and on to REG.

    #1436696

    SONA
    Participant

    Thanks for your reviews on the exam you took today.


    Thanks.
    AUD - NINJA in Training
    BEC - 66
    FAR - 74
    REG - 81
    #1437237

    KaliKingz
    Participant

    @jelani1911 FYI, that's way too much exam disclosure!


    Even when winning is illogical, losing still far form optional.
    -T.I.
    AUD - 81
    BEC - NINJA in Training
    FAR - 86
    REG - 90
    #1437387

    samantha09
    Participant

    Hi guys! I recently graduated in Fall and had been studying for FAR before I realized I probably wouldn't make it in March/got discouraged:(

    I'm now wanting to start with BEC – I sent my transcripts end of December 2016/They've received my payment is it possible/reasonable to try to make it before the changes?
    (Sorry if this isn't the place for this I'm new to the forum)

    #1437396

    CPYay
    Participant

    Do you have an NTS yet? Your only opportunity to test would be end of February or any open March dates (if available). Either way, you'd need to start studying ASAP. You could do it though. I am testing REG on March 7 and I will start studying this weekend. Depends on how much time you can commit and how dedicated you are.


    Roger/Ninja MCQs all day erryday
    AUD - 92
    BEC - 84
    FAR - 89
    REG - NINJA in Training
    #1437404

    samantha09
    Participant

    No I haven't received my NTS yet! That's why it may be risky to start studying now and hope it comes in time. I'm not sure how the testing availability works doing it last minute etc/how quickly dates fill up

    #1437407

    CPYay
    Participant

    What state are you in?


    Roger/Ninja MCQs all day erryday
    AUD - 92
    BEC - 84
    FAR - 89
    REG - NINJA in Training
    #1437416

    samantha09
    Participant

    CA!

    #1437419

    CPYay
    Participant

    You're probably not going to get it. I am in CA too. I submitted my transcripts and payment in June. Took them 8 weeks to approve me. From that point of approval to being able to sit for my exam took another ~2 weeks. I sat for FAR on 8/26.

    You can check https://www.prometric.com/en-us/clients/cpa/Pages/landing.aspx for seat availability though (it's a link under “Optimizing Schedule” paragraph). This way you can study and once you get your NTS you can lock in one of the open dates in March.


    Roger/Ninja MCQs all day erryday
    AUD - 92
    BEC - 84
    FAR - 89
    REG - NINJA in Training
    #1437504

    WholeLifeWorks
    Participant

    .


    -
    #1437624
    Rosy0407
    Rosy0407
    Participant

    @samantha09 If you are almost sure they'll let you take the exams, I would say start studying ASAP. You submitted your application in December therefore you might be able to make it for this testing quarter. It took about 8 weeks to hear from them. we have until March 10 to test. Good luck! Go Cali!!…. and the rest of the states lol


    No one said it would be easy.
    AUD - 79
    BEC - NINJA in Training
    FAR - 76
    REG - 76
    #1440146

    CPYay
    Participant

    Just took BEC.

    Ouch.


    Roger/Ninja MCQs all day erryday
    AUD - 92
    BEC - 84
    FAR - 89
    REG - NINJA in Training
    #1440185

    anyatver
    Participant

    @CPYay-please elaborate (without any specific exam dislosures):)


    Hoping for the best and preparing for the worst!
    AUD - NINJA in Training
    BEC - 82
    FAR - NINJA in Training
    REG - NINJA in Training
    #1440197

    CPYay
    Participant

    Haha of course.

    First teslet was easy. Nothing I didn't expect. Second was from Mars. I don't even know what happened. Third was mixed. So I clearly sucked on the second one. Written responses were manageable.

    Formulas and IT knowledge are paramount. This test can encompass anything from the material, so just have a broad knowledge base. Not sure how much detail I can provide other than that.

    Oh… also don't drink a glass of water and a Redbull before sitting for three hours.


    Roger/Ninja MCQs all day erryday
    AUD - 92
    BEC - 84
    FAR - 89
    REG - NINJA in Training
    #1440204

    anyatver
    Participant

    Got it! hearing other people's experiences really helps! How did you do with the time allotted? I am so scared to get bogged down on some stupid MCQ and not have enough time for WC-when you say manageable-the topics were something you could BS about? Some Ninja ones are seriously bazaar (Plan on reading them all this weekend!)


    Hoping for the best and preparing for the worst!
    AUD - NINJA in Training
    BEC - 82
    FAR - NINJA in Training
    REG - NINJA in Training
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