Try us FIRST before you spend your hard-earned money.
Over 2,500 FREE CPA Review Questions and Answers Available to YOU (for FREE)
Try us FIRST before you spend your hard-earned money.
July 8, 2014
Lesson 154
From: Joe
Scores Recently Released--Did You Pass?
Thanks to everyone who writes in to tell us about your passing scores on the CPA Exam. We clearly didn’t get into this business to make money (“FREE” is a tough pricing strategy if making money is your goal). We got into this business to help people become successful and pass. So, thanks for all the kind messages. You make our days better.
The Five "C's"
The July-August CPA Exam testing window is now open!!! That means that candidates from all over the world are getting ready to go to an exam site to seek those essential 75 points.
I was recently on vacation in Prague and one of my favorite college students from last semester sent me an email. She said that she had been studying diligently for her first part of the CPA Exam but was getting a bit nervous. She wanted to know if I had any last minute advice.
I told her that for decades I have suggested that candidates who are getting ready to take the CPA Exam should focus on the “five C’s.” I am a big believer that anyone who puts in a sufficient amount of study time probably has enough knowledge in their head to pass. Thus, the key to success during the exam is making sure that this knowledge gets out of the head and onto the test. The five C’s can help that to happen. They can assist you in maximizing your points. And, that is really what you want – to be able to earn all of the points that you deserve.
If you are taking the CPA Exam during the July-August testing window, here are five C’s that I would like for you to think about as the day gets closer. More...
Did You Know We Support ProjectHOPE?
That's right. Project HOPE is probably best known for their hospital ships that respond to disasters. Through our community forum, we support the initatives of ProjectHOPE. If you have it in your heart to help, it would certainly help those in need. Your tax-deductible donation today not only offers a tangible way for you to give back for the help you receive through CPAreviewforFREE, it helps provides lifesaving health education and humanitarian assistance around the world.
Facebook and Ten Favorite Quotes to Keep You On Track
If you follow us on our Facebook page, you know that we post a “success” quote most days that come from my book “Don’t Just Dream About Success: Stack the Odds in Your Favor” (available for $8.99 on Amazon – both paperback and Kindle). I went back recently and looked through all the quotes for the past few months and here are ten of my very favorites:
--“Success comes to the person who makes the best use of today.”
--“Mediocrity is a disease that is easy to catch.”
--“Successful people examine their failures – not to feel guilty or assign blame – but in search of improvement.”
--“No one experiences an extraordinary life through procrastination.”
--“Avoid settling for short cuts and easy answers. We all have unlimited possibilities, but they are only available to those who are willing to push through self-imposed boundaries.”
--“Most successful people have a few Level-3 goals that light up their days and nights and push them forward, often at blinding speed.”
--“Too often, we settle for dreams that merely scratch the surface of our abilities and then wonder why we are dissatisfied with the results.”
--“The desire for success burning within the heart has to be hot enough to push the person to do the difficult work that is necessary.”
--“Some people linger in the past while others long for the future. Success always dwells in the current moment.”
--“Success always starts with a dream. The bolder the dream, the bolder the success can be.”
Attack the Day!
We were in Vienna recently as part of our vacation. We had a wonderful tour guide who met us each morning and led us through the museums, cathedrals, art galleries, and restaurants. She set a tone for us every day that provided the energy necessary to get out and experience the life of that city.
Every morning, as we gathered in the hotel (often with sleep in our eyes), our tour guide would rouse our spirits with her daily battle cry: “Let’s go out there and attack the day.”
“Attack the day” – what a great mantra for starting each day. It is very easy to be passive, to sit on a chair and hope that we don’t miss too much of life. In other words, it is very easy to be lazy.
But lazy is no way to have a life that means something. Lazy is no way to make a difference in this world. Lazy is no way to become successful. We really need to be more aggressive in our actions. We need to move forward with a more ambitious attitude. “Attack the day.”
When we get up each morning, we have the possibility of creating something great, something wonderful, something worth remembering. Every day holds that possibility. But lazy is never going to make it happen. You have to be willing to attack the day. Whether it is the CPA Exam or your job or school or some other goal that you have in mind, success only comes if you get up and make it happen.
Yes, do go out there and attack the day.
While many places offer you a practice exam tool, or a study bank, or books, our partner, Fast Forward Academy for CPA Review, offers an entire powerful and intelligent platform - everything you need to study, learn, and pass your exam on the very first try. We have tools and features that no one else has, creating an educational experience like no other.
Time for some practice.
Let’s see if we can add a few points to your CPA Exam scores. You can do it.
Auditing
Which of the following is an auditor allowed to do using computer-assisted auditing techniques (CAAT)?
I. Select accounts receivable to confirm with customers based on variables such as the size and age of the balance.
II. Uncover inventory quantities for extra testing because the balances seem excessively high in comparison to the sales volume.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
FAR
At the start of Year One, Vivian Knox begins to work for the Fort Louis Corporation. By the end of Year One, Knox has earned 3 vacation days and 2 sick days. She is normally paid $200 per day. Knox did not have time to take the vacation in Year One but is expected to do so in Year Two. Knox had not been sick in Year One but realizes that she might well be sick and be forced to miss work in Year Two. When she eventually quits, she cannot demand payment for unused vacation pay or sick pay. At the end of Year One, what liability (if any) does the Fort Louis Corporation have to recognize for its obligation to Know?
A. Zero
B. $400
C. $600
D. $1,000
Regulation
The Williamton Corporation is a large and successful organization that files a corporate income tax return every year using a December 31 year-end. On March 8, Year Two, the company donated cash of $12,000 to the American Heart Fund. Because of the high level of taxable income in Year One, the corporation wants to include this charitable contribution in filing its income taxes for Year One. How is that possible?
A. It is not possible. It must be reported as a charitable contribution in Year Two.
B. All contributions made before March 15 of one year can be deducted in the prior year.
C. It can only be included in Year One if the company’s board of directors authorized the contribution during Year One
D. The contribution cannot be deducted in Year One because it is a gift of cash and not a long-term capital gain property.
BEC
A company needs to raise a lot of money in a hurry. Which of the following is not an advantage of debt-financing over equity-financing?
A. Interest payments are tax deductible but dividend payments are not.
B. Payouts are usually fixed for debt but not for equity financing
C. Creditors do not automatically gain any control in a company which does happen in equity financing.
D. Bankruptcy is less likely as a result of debt financing than it is as a result of equity financing.
Answers
Auditing
Answer is C
Both of these tasks are basically mechanical and a computer can do mechanical tasks much faster and more efficiently than a human. Software can be created that allows the auditor access to the client’s digital records. The software can be programmed to make selections based on predetermined criteria such as size and age. As computers and programming become more sophisticated, the number of tasks that can be carried out using computer-assisted auditing techniques will continue to grow.
FAR
Answer is C
A compensated absence for vacation pay must be recognized if earned and will probably be taken at a later point in time and the amount can be estimated. The $600 (3 days at $200 per day) meets the criteria. However, sick pay is not accrued here because it is dependent on a future event – Knox has to get sick. She cannot otherwise demand payment. Because a future event must occur for the sick pay to be necessary, there is no liability until she actually gets sick and misses work. There is no obligation at the present time.
Regulation
Answer is C
If a contribution is authorized by a company’s board of directors in one year and the gift is made prior to March 15 (for a corporation filing with a December 31, year-end) of the following year, the gift can be deducted in the initial year of authorization. Many companies do not know the amount of their income until late in the year and, therefore, are not in position to know the precise amount of their giving until the beginning of the following year. This time extension allows them to assess the amount that they can afford to contribute.
BEC
Answer is D.
There are many advantages of debt financing. Interest payments can be deducted as expense but dividend payments are not deductible. Payments of interest and principal are usually set which is good for financial planning purposes. With equity, dividend payments might have to rise if the company becomes especially profitable. And, unless treasury stock is reacquired, eliminating equity is unlikely. When stock is issued, new stockholders are likely to be drawn in who can possibly want to be involved in the management. Creditors rarely have that opportunity unless the company has trouble making repayments. Unless that happens, the creditors are properly not involved with running the company. However, bankruptcy is always more likely in connection with debt financing because the creditors can force the company into bankruptcy if scheduled payments cannot be made as they come due.
Joe Hoyle
President CPAreviewforFREE
|
Tuesday, August 12, 2014
Five C's to Success on the CPA Exam; Free New Questions
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment