Ask the NINJAs: Present Value Calculations for FAR

Dear NINJAs,

Do you now if time value of money is on the FAR exam?

If so, do they ask the very complex questions that I see in my review course? – Terri

 

 

Dear Terri,

Your CPA Review course may be over-doing it.

For the most part, the TVM calculations for FAR aren't as in-depth as they are for BEC, where topics like Capital Budgeting are tested.

For FAR, you will need to know the difference between two different cash flows using a table and pick the correct number.

An example from NINJA MCQ would be:

MCQ2

Make sure you know the difference between an Annuity Due and an Ordinary Annuity.

For example – with Lease Payments (from the NINJA Notes):

Annuity Due
o Payments begin at the start of the lease
o Think: Rent is Due at the first of the month

Ordinary Annuity
o Payments begin after the end of the first year
o Think: An annuity that pays you at end of year

 

 

-The NINJAs

Have a question for the NINJAs?

Send it here and Jeff will forward it to them via Carrier Pigeon.

Get more Ask the NINJAs

Related Posts

Ask the NINJAs: How to Study 20 Hours a Week for the CPA Exam

Dear NINJAs, I am stuck. I started my CPA Exam journey several (more than two) years ago. I started with (expensive course). I do not like their product. I like the study schedule that’s created, but the program has since changed and I am having a hard time using their study schedule. Consequently, I have […]

Ask the NINJAs: How Long to Study for FAR

Dear NINJAs, Short and Sweet: How long should I study for FAR? -Kay Dear Kay, Short and Sweet back at ya: “Traditional” Course Study Method: FAR = 7-8 Weeks @ 20 hours a week. NINJA Study Framework: FAR = 6-7 Weeks @ 20 hours a week. (If you’re not studying 20 hours a week … […]

Ask the NINJAs: When to Start Studying CPA Exam MCQ

Dear NINJAs, Hope this email finds you well! My name is Karina. It’s nice to “meet” you. I work full time at an audit firm. Studying for AUD which I’m sitting for early December. I purchased Wiley as my main course and started studying in September but lost motivation due to needing to find the […]

Ask the NINJAs: 2017 CPA Review Materials on 2018 CPA Exam

Dear NINJAs, I am looking to start studying for the BEC or AUD after tax season 2018. A co worker gave me her CPA Review materials she purchased during 2017 (books/flashcards). Would these still be a good thing to use to study for the CPA Exam in 2018 along with NINJA Study Materials also? Thanks […]

Leave a Reply