How do people study FAR?

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    Topic
  • #2067995
    BlackPink
    Participant

    Hello,

    I have an exam in 3 days and feel very unprepared like I literally forgot everything especially deferred income taxes, bonds, pensions, leases…. I know the basic accounting stuff. How do people retain this information?

    In my last cram what are the topics I should study to at least have a fighting chance?

    Also does anyone else feel Beckers mcq are extremely hard? Just reading the question takes 10 minutes literally.

    Thanks in advance.

    AUD - 1
    BEC - 1
    FAR - 1
    REG - 1
    "You’re killing yourself for a job that would replace you within a week if you dropped dead. Take care of yourself."
Viewing 13 replies - 1 through 13 (of 13 total)
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  • #2068454
    sal02
    Participant

    I'm having a similar experience 5 days before my exam. It's my first exam attempt across the board.

    Becker definitely leaves you hanging in that last 2 week study period. I actually extended my test one week after my first mock exam, as I knew I wasn't ready yet.

    The “Final Review” was ok, but I need a better framework to get practice otherwise. I love the idea of doing MCQ's at this point, while then making immediate notes regarding what I missed on any I got incorrect. There just doesn't seem to be a great way to do that in Becker. The “Final Review” question bank is fine, but what I really need is something that functions similar to the MCQ's at the end of each chapter. I need them somewhat random, with immediate feedback. The Becker MCQ's just spit out 243 questions, in grouping that have me feeling I'm doing the same problem 10 times over.

    I also agree that they do seem extremely hard. Questions where I understand what is asked, and recall the concept, I am still getting wrong. It's a bit infuriating that this point, as I feel I'm losing precious time to nail this thing down.

    #2070548
    Mike J
    Participant

    First, count to ten slowly and breathe. I don't mean this as condescending. The exam isn't going away but neither are you. So first you have to relax. I know, I've felt overwhelmed taking these exams. Second, I'd remind myself that I am good enough to be here. I put in the work and saw my knowledge and comfort with the material grow. Yes, I said knowledge and comfort level, not some grade or number on a practice test. The exams will test your preparation and ability to think critically. Here, they're using basic accounting knowledge across myriad topics.

    That said, you should be comfortable sketching out a problem with either a journal entry or a T-Account. Basically, set up a formula to solve for X. That's what those BASE formulas try to do.

    In other words–quick, how do you increase an expense? Is it a debit or credit? How do you re-tire something? Think of the normal entry and re-verse it.

    For some other questions, the exam will test you to determine how much time has passed in order to accrue an expense.

    For govt, you basically want to know the general fund entries and Budgeting entries. Also, know what each funds does–let the name guide you

    For nongovt non profit, know how to categorize and recategorize the different types of revenue. Think of what the donor wants.

    There's more but that should help you build some confidence.

    Good luck.

    AUD - 90
    BEC - 79
    FAR - 77
    REG - 77
    They don't trust JUST ANYBODY to count beans
    #2070563
    YouCanDoIt
    Participant

    @Mike, beautiful advice there, especially regarding the comfort level.

    AUD - 77
    BEC - 79
    FAR - 75
    REG - 80
    Won't know until you try.

    FAR: 76
    REG: Currently studying
    AUD:
    BEC:

    #2070740
    sal02
    Participant

    Thanks for the advice, Mike. I did settle into a plan for my last 5-6 days that seems to be valuable. I'm working through all of the Final Review MCQ's in small chunks, making notes about key/overarching concepts that will provide the foundation to “solve” the problems the way you describe.

    In the end, I know I likely won't be 100% successful if I was asked to calculate each and every component of Net Periodic Pension Cost, but I'll try to get every single point I can.

    I'm nervous, but feeling a bit better. There is so much material I don't see how more than a small percentage of folks are more prepared than I am, so I'm going to trust that I'm as ready as I can be. And that should give me a shot to pass.

    My study approach was to simply make sure I did enough that if I did fail, I won't regret the amount of time/effort I put in. I'll be able to live with it if I don't pull it off.

    #2070815
    DDylan
    Participant

    It reminds me the time when I took FAR back then. Govt accounting/non profit was also heavily tested. I asked one of my friends who is a controller in one of the govt agencies if he ever uses these stuff in his daily work. He said no hell no. He has not even heard some of the terms ever before…lol

    I do not understand why AICPA puts some much weight on stuff that will be RARELY used by most of the practitioners….(assuming most of the actg professionals are not really doing govt related engagement)

    #2071160
    Mike J
    Participant

    @youcandoit. Thanks. I know how soul-crushing these exams can be. I want to help where I can.

    @sal02. You want to shoot for the stars and settle for the moon. Cheesy I know. You won't conquer the exam by trying to be an expert at everything. Won't happen. But, I started to make headway when I tried to simply what I had to do, question-by-question and topic-by-topic. So don't worry too much about what you don't know–especially so close to exam time. Instead, I'd practice your approach to each question eg make sure you know COLD what a debit and credit balance account is and understand the logic of guided solution sets to MCQs that tripped you up (regardless if you got it correct).

    Relax and trust the work you put in.

    AUD - 90
    BEC - 79
    FAR - 77
    REG - 77
    They don't trust JUST ANYBODY to count beans
    #2072495
    Accountant405
    Participant

    @ddylan I have to agree. 90% of the information that is tested on the CPA exam is bogus. In the real world you would never have to use most of it. Like really calculate stock that’s why there are stock brokers. Calculate loan principal and interest…. ever heard of a loan officer. I mean how many times does a business go in to buy a piece of equipment and say well bob I do not know if we should buy this tractor for 60,000 the future value will only be 47,657 in 3 years or hey bob what’s the present value of the tractor we are going to buy in 2020. I work in tax and everything they teach in the CPA exam is provided by other professionals. If accountants needed to know all this we would not need banks or financial advisors or mortgage companies or loan officers or legal professionals. The CPA exam needs to get up to date with how the real world works.

    #2072747
    jules1268
    Participant

    @bigdoublet357, I feel like the value of the CPA is in knowing all the bogus stuff other professionals know/do. Instead of the company relying blindly on them, their CPA will have an idea if the information is correct or not to help the company not be taken advantage of.

    AUD - 76
    BEC - 77
    FAR - 78
    REG - 80
    12 years in the making
    #2072819
    PJ
    Participant

    @Bigdouble, you could not be more wrong. Do you seriously not think accountants and auditors need to know how to account for loan principal and interest? Really? You think a loan officer is going to do everything for you?

    And you don't think accountants and finance professionals don't need to understand PV calculations? Yikes.

    AUD - 83
    BEC - 92
    FAR - 92
    REG - 91
    Licensed in IL
    #2072918
    Accountant405
    Participant

    @pj let me ask you when you buy a car or a home do you say wait let me call my accountant to have them calculate these amounts no, and neither does anyone else. You are provided loan documents by the client and whatever is on that loan document is what you have to report, it does not matter what the calculation is if the client does not pay those amounts they default on the loan. 99% of the time accountants do not even know what their clients have done until year end and the loans have been in effects for months. That’s why they call it PBC provided by client, and that’s what you have to report, and on these document it tells you the amount of principal and interest paid for the year. Also tell me one time in your life you have had to calculate present or future value other than in school. That’s why we are accountants and not an actuary. That’s why we have programs like Prosystems and TValue to calculate everything you would ever need to know and fixed asset softwares because they do not rely on human calculations anymore or human opinions. Yes you need to know how to accrue and account for the payments but those amounts are provided, if you can do simple math you can easily calculate the amounts to report and make journal entries for. The CPA exam needs to focus on how to use these softwares so you can get jobs in the real world and how to clear diagonistics so a tax return can be E-filed or why in Texas you have to file a franchise tax return even though you are an New Mexico based company, or why your considered to have nexus in one state and not another. That my friends is the real world accounting not all this stuff you will learn once and never use again, ask any accounting professional!

    #2073092
    Yahmon
    Participant

    @Accountant405 I totally disagree with your opinion. In the real world accountants really do have to learn how to calculate PV but especially how to apply it to different scenarios. I think your opinion is from the level you are in your career, because at at senior management level a lot of what is tested on the CPA is used. The reason why the CPA exam was changed to reflect a more real world scenario is exactly because you had people passing the CPA exam that couldn't put together a good amortization schedule, calculate PV and most importantly didn't know why it was needed.

    You 100% need to know most of the stuff that's tested on the CPA if you want to be a CFO or any other upper management roles in accounting. In my opinion that's the main goal of the CPA exam.

    AUD - 85
    BEC - 76
    FAR - 79
    REG - 84
     

     

     

    FAR 8/20/15 - Passed 77
    AUD 10/10/15 -
    BEC TBD
    REG TBD

    #2073305
    Accountant405
    Participant

    @Yahmon I hate to say this but based on your post you can tell you have absolutely no experience in the accounting industry. If you think you put together an amortization schedule your crazy there is software that does it in seconds. Also check Forbes and most of the CFO and CEO of major corporations do not even have an accounting background. Also at the senior position or Managment your not calculating anything your reviewing and handling client relations. That’s why you have preparers, sr preparers, and mangers. Why do you think external auditors have such a problem with CEOs and CFOs because they don’t understand accounting at all. And answer me this are you going to add something on your books at present value or future value because if you discount it your going to have a difference between cash spent and recorded amounts which is also known as income smoothing and illegal. You don’t buy a piece of equipment and add it to the books at the future value it doesn’t matter what the future value is. You add it at cost and depreciate it based on the value. You don’t receive a loan and say well crap my $900,000 loan is only worth $657,357 dollars I can only buy $657,357 of inventory you go buy $900,000 of inventory. You don’t have to pay back the future value you have to pay back the value you borrowed plus interest. If you would like to talk to any of the 7 sr managers at my office or the 5 partners they will tell you the same thing, they do not use anything they learned on the CPA exam you learn it and forget it.

    #2073332
    PJ
    Participant

    @accountant405, You are coming off as a total jerk.

    I am a licensed CPA in public practice, and certainly do not need a lecture from you on the “real world.”

    I had a long response I posted earlier that for some reason disappeared. I'm not going to bother retyping it because frankly, I don't think think you have the capacity to understand it. Your posts have been total nonsense and reflect very little actual accounting knowledge.

    AUD - 83
    BEC - 92
    FAR - 92
    REG - 91
    Licensed in IL
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