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Am I being too much of a nitpick? Am I the only one who has noticed the Becker review questions don’t make grammatical sense and sometimes require you to make assumptions? Are these actual retired FAR questions I am seeing or Becker generated?
For exmaple: CPA-00597
Dana Co.’s compensation expense account had a balance of $224,000 at December 31, Year 1, before any appropriate year-end adjustment relating to the following:
1) No salary accrual was made for December 30-31, year 1. Salaries for the two-day period totaled $3,500.
2) Year 1 officers’ bonuses of $62,500 were paid on January 31, Year 2.
OK, so #1 makes sense to me… $224,000 + $3,500 = $227,500 (Choice D). But now look at #2. The way I interpreted the second event was that officers’ bonuses were PAID on January 31, Year 2. The fact that the salaries were PAID in year 2 would have no bearing on my year end expenses. This leads me to believe expenses have been recorded and the exam question is trying to trick me into adding more expense.
However, the answer is not choice D. The answer is choice A. $290,000 ($227,500 + $62,500). Nowhere in event 2 does it say officers compensation went un-accrued as it tells you in event #1. In order to get choice A, one has to assume that the officers compensation expense was never recorded properly.
I find that quite a few questions seem to rely on making assumptions like above. At the same time there are also quite a few trick questions. This to me is conflicting for how to approach questions. Is the actual exam really like this? I feel like I am playing a guessing game on what is being asked of me! Anyone have some insight they can share?
Also, I am currently in Chapter 2 of Becker FAR review and I plan to sit on 11/3/15! Do you complete the sims and final review when you finish each chapter? Or, do you complete them after you finish all chapters using them as a capstone?
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