CPAreviewforFREE--Tips to Add Points at School and on the CPA Exam, New MCQ's

CPAreviewforFREE--Try us FIRST before you spend your hard-earned money. 166 Weeks of Operation and 27,707,860 Page Views (an average of over 166,000 page views per week for over three years)Lesson 103---Use CPAreviewforFREE to Achieve Better Grades in College Courses, Tips to Pass the CPA Exam, Add Points Now From: Joe (1) – Although I have been teaching now at my university for over 2 weeks, I realize that a lot of college classes begin in the next day or two so WELCOME BACK!!! Good luck – have a great semester!!! Learn it all!!! We have a lot of college students who get these email lessons. I hope you are excited about a new school year and the chance to expand what you know. If you are taking Intermediate Accounting, Advanced Accounting, or Governmental Accounting, you might want to consider our Points to Pass (FAR) program. We have taken topics from all across those three courses (leases, governmental, bonds, consolidations, and the like). We have picked our 250 favorite questions from those topics and we have set them up in a computer software program so you can work them 1,000s of times with different numbers every time. This is the best way in the world to practice these complex topics until you know each concept perfectly. Yes, of course, you can certainly use this program to pass the CPA Exam but until you get there, you can use it now to help you make an A plus in Intermediate, Advanced, or Governmental. Click Points to Pass program to work an example of working that basic question over and over until you can do the problem in your sleep. You’ll be surprised how quickly you can master even the most complicated financial accounting question using Points to Pass. (2) – As most people probably know, I live in Richmond, Virginia, where we had both an earthquake and a hurricane in the last two weeks. It is so very easy to get upset with all of the problems in the world today but when you survive two fairly serious natural disasters back-to-back, it is not a bad idea to stop and be grateful. When I listen to people on television these days (who always seem to be upset), I’m always reminded of what someone asked me one time: “Are you a person who sees the glass as half-full or as half-empty?” Don’t let yourself become obsessed with the glass being half-empty. There is nothing like a couple of big natural disasters to make a person become a bit happier with a half-full glass. When you walk away from such serious problems without broken limbs or a broken house, it is good to be thankful for what you do have. I have never done a survey but I’d bet a lot of money that people who view the glass as half-full pass the CPA Exam a lot quicker than people who view it as half-empty. (3) – On our website, we have a section titled CPA Exam Resources. I put a lot of interesting stuff there. One of those sections is “Tips for Success” where I occasionally post a tip for success on the CPA Exam – I think I’m up to 30 tips for success. In fact, I just posted a few new ones. I liked one of them so well that, after getting it posted, I copied it so I could share it with you. I guess I like the ones that I know pertain to me as much as they do to you. From Tips for Success When I used to teach live review classes, I would have a “you need to get serious” discussion at the end of the first day. One of my strong suggestions is that, during the time of preparing for the CPA Exam, all major distractions must be put completely out of reach. I would usually close that pep talk with the plea: “take a big sheet of paper and tape it directly over the face of your television and leave it there until you pass the exam.” Today, I would certainly update that admonition to include computer screens, Blackberries, iPhones, iPads, video games, Facebook, email, Twitter, and beer. The truth is that life is just full of wonderful distractions that are constantly calling us to come out and play. Many of us have become addicted to distractions. It is easy to let those distractions eat up all your valuable productive time so that, at the end of each day, we have accomplished nothing real. Make a list of your favorite distractions. Yes, you do know what they are. Then, decide how you are going to limit the amount of your time they consume. If you cannot control your own distractions, you might as well forget about the CPA Exam or any other true accomplishments in life. There are only 24 hours in a day and every minute you allow yourself to get distracted is a minute less that you have for the CPA Exam. If it is Facebook or the CPA Review, you’ve just got to choose the CPA Exam. Make it your goal, starting right now, to identify your personal distractions and begin to put a limit on them. In today’s world, this might be my very best piece of advice. (4) – We have somewhere between 25,000 and a gazillion people who get these email lessons every 10-14 days. Well, we actually have 25,000 right now but would love to have a gazillion. However, if you are ready to stop receiving them, you certainly have that right. Simply scroll down to the bottom of this lesson and you should find an “unsubscribe” button. If you click it, we will remove your name. We absolutely do not want to remove your name but we will. That, of course, is your right. (5) – One of the problems in studying for the CPA Exam is that it is easy to get discouraged. You have a bad day studying and you can’t shake off the negative feelings. You miss a couple of questions and you get discouraged. You forget something you thought you knew and you start to get stressed out. Don’t put unreasonable pressure on yourself. It is easy to forget that you just need to pass. You don’t need to be perfect. You just need to get 75 points. Unfortunately, sometimes, when you are really under pressure, common sense flies out the window. I was reading yesterday about a well-known college basketball program, a team that always seems to be prepared and do well. They don’t win them all but they do win a lot. The article was talking about what that team did when they had a bad game or when they messed up something. Instead of sitting around losing their confidence, they would all start yelling “Next Play!!!” – in other words, if you are going to win, you have to keep moving forward. You cannot let a setback set you back. Of course, we all need to learn from our mistakes but you simply cannot dwell on them. You can’t let the stress and pressure get in the way of your goal – to get better and win (pass the CPA Exam). So, when things look a bit bleak, I want you to think “Next Play” which means “forget messing up, let’s get back to moving forward.” I liked that. In fact, I found myself today whispering “Next Play” to myself whenever something happened and I didn’t like my action. You can just use up so much energy with the negatives. “I can’t do this,” “I can’t pass,” “I’m stupid,” “I want to quit.” Good gosh – you are never going to accomplish a single thing in life if you spend your energy pushing yourself toward failure. From now on, when something happens, and you feel those negative thoughts beginning to creep in, yell “Next Play” and move right on. The thoughts that you want to have: “I’m getting better” “I’m going to make it” “I will pass this exam” “Today I will add some points” “It is not easy but it is certainly passable” That’s the kind of energy that I want from you. Only energy that propels you forward. (6) – Time for a little practice. Work the four questions below. If you get all four, that’s wonderful, pat yourself on the back. If you get three correct, make sure you can do the other one by this time tomorrow. If you get two correct, make sure you can do the other two by this time tomorrow. If you get one correct, make sure you can do the other three by this time tomorrow. And, if you happen to miss them all, that’s not the end of civilization – just make sure you can do all four by this time tomorrow. FAR The Fitzhugh Corporation starts the year with accounts receivable of $200,000 and an allowance for doubtful accounts of $10,000 (credit balance). During the year, credit sales of $700,000 were made and cash of $600,000 was collected. Receivables totaling $12,000 were written off as uncollectible. At the very last moment of the year after all the above, one of the receivables written off (a $3,000 amount) was actually collected. If the company estimates that 5 percent of its ending receivables will prove to be uncollectible, what bad debt expense should be reported for the year? A. $13,400 B. $13,500 C. $14,400 D. $14,600 Answer is A When the percentage of receivables method is used, bad debt expense is not computed. It is the amount needed to change the allowance for doubtful accounts to the proper balance. Here, ending receivables are $288,000, which is $200,000 + $700,000 - $600,000 - $12,000 + $3,000 - $3,000. Notice the $3,000 balance was removed as part of the $12,000. When it becomes good again, the $3,000 is added back in and then subtracted to reflect the payment. The allowance must be 5 percent of $288,000 or $14,400. The allowance has a $1,000 credit balance, which is $10,000 - $12,000 + $3,000. The beginning balance was $10,000 but only (by the end) $9,000 in receivables were actually written off. To change the allowance from its current $1,000 credit to a $14,400 credit requires bad expense of $13,400. Auditing & Attestation Deshawn Brookshire CPA is auditing the financial records of Montreal Corporation. On a worksheet for land, buildings, and equipment, a machine is shown with a cost of $240,000 and accumulated depreciation of $76,000. The machine was bought two years ago. Under the accumulated depreciation figure, the auditor has placed a small mark to reference the testing that was done. Which of the following is least likely to be the explanation for that mark? A. The auditor has recalculated the depreciation for each of the two years of operation. B. The auditor has verified the current value of the machine. C. The auditor has looked into any changes made during the current period in the accumulated depreciation balance. D. The auditor believes the method used in computing depreciation is appropriate according to U. S. GAAP. Answer is B The mark is with the accumulated depreciation. Normally, in connection with accumulated depreciation, an auditor is expected to verify that an appropriate method is applied and has been calculated properly. In addition, the auditor will want to investigate any changes to accumulated depreciation other than annual depreciation. For example, a repair expense might have been incorrectly capitalized through a reduction in accumulated depreciation. If the auditor does look into the value of the asset, the auditor’s mark would have been made under the book value of the asset because that is the number in question. However, the auditor is unlikely to consider the fair value of this machine unless evidence is uncovered to indicate that an impairment problem might exist. Regulation The Hammerstine Corporation is privately-held. During the current year, the company raised a considerable amount of money for expansion of its plant and operations through the public sale of negotiable notes. Which of the following is true of this transaction? A. It does not make the company subject to the registration requirements of the Securities Act of 1933. B. It only makes the company subject to the limited time provisions of the registration requirements of the Securities Act of 1933. C. It only makes the company subject to the capital equivalent provisions of the registration requirements of the Securities Act of 1933. D. It makes the company subject to the registration requirements of the Securities Act of 1933. Answer is D The company is now an issuer of securities to the public. As an issuer of securities to the public, the company must obey and follow the registration requirements of the Securities Act of 1933. BEC Following is the official definition for a term: “A process, effected by an entity’s board of directors, management and other personnel, applied in a strategic setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.” Which of the following terms is being defined here? A. Total quality management (TQM) B. Enterprise risk management (ERM) C. Risk response and reward (3R) D. Strategic initiative feedback (SEF) Answer is B In simple terms, ERM encompasses all actions that a company undertakes to determine the amount of risk that is deemed reasonable and appropriate while measuring the actual amount of risk being faced at all times to keep the two in agreement. Labor Day is over – time to get back to work. Add some points and make good things happen!!! Joe Hoyle President CPA Review For FREE