CPA Exam Blog and Review Forum

Club 75 Live Event: FAR and REG Webcast Monday November 9th @ 10pm EST

Jeff - another71.com — Mon, 09 Nov 2009 03:28:58 +0000

Dr. Phil Yaeger of Yaeger CPA Review will be hosting a live webcast Monday November 9, 2009 at 10 pm EST for Club 75 members.

He will cover four hot CPA Exam topics, three from Regulation and one from Financial Accounting and Reporting.

Regulation:
-1231, 1245, and 1250 Assets

-Like-kind exchanges – with and without a liability attached (…does your review course cover like-kind exchanges with a liability in-depth? It should.)

-Corporate and Partnership liquidating/non-liquidating distributions

Financial Accounting and Reporting:
-141R Consolidations

If you are taking either REG or FAR in the upcoming weeks, you don’t want to miss this event.

Improving your proficiency on these hot exam topics could very well give you the extra boost you need for your upcoming exam.

Join Club 75 and a link to the webcast will be provided.

Details:
-This webcast is for Club 75 members. [Go here to join Club 75]
-If you join, you can also take part in a [Wiley CPA Review 2010 beta test (worth approx $100)]

Wiley CPA Review’s Special Offer for Club 75 Members

Jeff - another71.com — Fri, 06 Nov 2009 19:18:34 +0000

Wiley CPA Review has a special offer for Club 75 members: Test drive their new 2010 Wiley CPA Exam Test Bank Online, tell them what you think about it, and get four months of access for free. This is approx. a $100 value.

The what: Beta test their new 2010 online 4-part Online CPA Exam Test Bank from mid-December to mid-January

The who: Club 75 members

The why: You basically get 5 months of access to 2010 CPA Exam questions for free (beta test month + four additional months).

Additional benefits of Club 75:

-Access to the private Club 75 CPA Exam community with over 70 paid members and 2,000+ postings

-Exclusive webcasts with the CPA Exam experts @ Yaeger CPA Review (next one is Monday, November 9th with Dr. Phil Yaeger who will go over 3 must-know FAR topics and three must-know REG topics)

-Complimentary FAR and REG notes as a bonus

Even if you only sign up for one month – you’re still getting approx $100 of software access for $19.95.

To sign up now: [Go to Paypal]

To read more: [Go to the Club 75 Page]

CPA Exam Pass Rates for 2009 Q3 Released; Strongest Quarter of the Year

Jeff - another71.com — Thu, 05 Nov 2009 15:11:54 +0000

The CPA Exam pass rates for the third quarter of 2009 have been released and as usual, Q3 is the strongest quarter of the year.

This site was one of the first to start tracking CPA Exam pass rate rate statistics and as I wrote in March 2008, 41-45% of candidates were passing each section.

Now, 45-52% of candidates are passing each section of the exam.

Here is the breakdown for 2009:

Auditing and Attestation:
Q1: 47.61%
Q2: 51.79%
Q3: 51.52%

Business Environment and Concepts:
Q1: 46.23%
Q2: 48.62%
Q3: 52.27%

Financial Accounting and Reporting:
Q1: 45.54%
Q2: 50.58%
Q3: 51.18%

Regulation:
Q1: 47.96%
Q2: 52.25%
Q3: 52.41%

If the fourth quarter of 2009 follows the trend from Q4 2008, scores will dip approx. 9% on average.

Get the report from cpa-exam.org here.

Photo Attribution:

http://www.flickr.com/photos/stuartpilbrow/ / CC BY-SA 2.0

Video: CPA Exam Score Release FAQs

Jeff - another71.com — Fri, 30 Oct 2009 18:16:40 +0000

Every testing window, CPA Exam candidates ask the same questions about the score release process.

Hopefully, this will answer some of these questions:

1. What is the difference between the “AICPA release” and “NASBA release” of CPA Exam scores?

2. I see the term “NASBA state” on your website. What does that mean? How do I know if I live in a “NASBA state”?

3. I sat for my exam on _______. When can I expect my score?

4. What time of day do CPA Exam scores come out?

Video ratings are appreciated – jeff@another71.com

Video: REG – Non-Liquidating Distributions

Jeff - another71.com — Sun, 25 Oct 2009 15:28:28 +0000

CPA Exam Review instructor Phil Yaeger of Yaeger CPA Review has done a special teaching segment for another71.com readers over non-liquidating distributions for Corporate Taxation. People studying for the Regulation section of the CPA Exam will want to pay special attention to this and know how to work these problems.

Here is the scenario for the video segment:

Corporate Taxation – Non-liquidating distrubtions

Dahl Corp. was organized and commenced operations in 1998. At December 31, 2008, Dahl had accumulated earnings and profits of $9,000 before dividend declaration and distribution. On December 31, 2008, Dahl distributed cash of $9,000 and a vacant parcel of land to Green, Dahl’s only stockholder.

At the date of distribution, the land had a basis of $5,000 and a fair market value of $40,000. What was Green’s taxable dividend income in 2008 from these distributions?

a. $9,000
b. $14,000
c. $44,000
d. $49,000

For best results, I would work the question yourself and then watch the video. This was my strategy while going through the Yaeger REG HomeStudy and I found it highly effective.

(Phil mentions a PDF in the video, but I have copied the question on the PDF to this post)

If you like these videos, ratings are appreciated. – Jeff@another71.com

Video: REG – Dividends Received Deduction

Jeff - another71.com — Tue, 13 Oct 2009 18:07:24 +0000

CPA Exam Review instructor Phil Yaeger of Yaeger CPA Review has done a special teaching segment for another71.com readers over dividend received deductions for Corporate Taxation. People studying for the Regulation section of the CPA Exam will want to pay special attention to this and know how to work these problems.

Here is the scenario for the video segment:

Corporate Tax – Dividend Received Deduction

1. Corporation A has income from sales of $20,000 and dividend income of $10,000, with business expenses of $22,000. Corporation A is eligible for the 80% dividend received deduction. What is the dividend received deduction for Corporation A?

2. In the above example, assume that all the facts are the same except that the business expenses are now $22,001. What is the dividend received deduction for Corporation A?

For best results, I would work the question yourself and then watch the video. This was my strategy while going through the Yaeger REG HomeStudy and I found it highly effective.

(Phil mentions a PDF in the video, but I have copied the question on the PDF to this post)

Phil also goes over this extensively in the Yaeger CPA Review Regulation HomeStudy, which is what I used to score a 92 on Regulation.

The Yaeger CPA Review Regulation HomeStudy Course includes:

10 DVDs (approx 38 hours of teaching)

Wiley CPA Review Regulation book

Wiley CPA Review Regulation software

Instructor handouts

Instructor Hotline

You can save $150 on the Regulation HomeStudy by using the discount code(s):

1part2go

1part2go*1

1part2go*2

1part2go*3

… at checkout and get everything you need to pass Regulation for $345.

Read more about the exclusive Yaeger CPA Review discounts.

Read more about the Regulation HomeStudy.

CPA Exam Score Release Predictions: October and November 2009 – Wave 1

Jeff - another71.com — Wed, 07 Oct 2009 22:36:07 +0000

Happy Birthday, CPA Exam Scores and Results predictions.

Wave 1:

(Exams taken between October 1 and November 7 are eligible, but you are not guaranteed to get your score in Wave 1)

AICPA Release:

BEC – Friday, November 13
REG – Monday, November 16
AUD – Wednesday, November 18
FAR – Thursday, November 19

NASBA Release (posted between 9pm and midnight Eastern):

BEC – Monday, November 16
REG – Tuesday, November 17
AUD – Thursday, November 19
FAR – Monday, November 23

Note – these are based on trends from data that I have recorded from previous windows. These are just predictions.

As score information becomes available, I will post it at the CPA Exam Forum. To avoid confusion as to where to get score release information, I am closing comments on this post. Please use the forum.

As always, thanks for reading another71.com.

-Jeff

[Click for Score Release Information from Previous Windows]

My CPA Exam Success Story: Phyllis from New York

Jeff - another71.com — Mon, 05 Oct 2009 08:18:56 +0000

I am definitely not your traditional student. After getting pregnant at 19 and married at 21, I never completed college. (To be honest, I never really started. I finished about 18 credits at the local community college.) Life continued. 4 more babies came along. I worked odd jobs, but never felt satisfied. Then a life changing event happened. We had relocated from NY to Pennsylvania for my husband’s job. We bought our first house, and then, my husband was let go with no warning. There we were, in Pittsburgh, with 5 kids, a mortgage and no source of income.

I was able to get a full-time job in mortgage collections for the medical benefits, but it bothered me that I was unable to make enough money to support my family when I needed to. At that moment I decided that was never going to happen to us again. I was going to go to college, and get my CPA by the time I was 40.

We moved back to New York and I attended the local community college and then a local private university. I graduated in May 2008. I got a terrific job as a Special Auditor/Investigator investigating Medicaid Fraud. That gave me just over 2 years to complete my mission of becoming a CPA by 40. I decided failure was not an option for me. I was not paying for any section more than once, and I never wanted to say the words “I failed” out loud.

I followed my review course for my first section, AUD. I watched the lectures, did every multiple choice question, the final exams and all the simulations. (It is very important that I note that I could not have done any of this without my husband. From the moment I started studying for this exam, he picked up all the slack. I would study at the clubhouse and he would bring me lunch and snacks. He did the grocery shopping, ran the kids around and cooked dinner. He went to family functions with the kids. He was amazing and supportive and I know I couldn’t have done it without him!!)

When I sat for the first part of the exam on Feb. 13, 2009, I was a wreck. I vomited in the parking lot just before my exam, and when I left, I cried in the car. I felt like a complete failure. I prepared myself for the worst, but hoped for the best.

Thankfully, I had found another71 just when I started the process. I knew how the score release worked and when the AICPA released the AUD scores, I could barely function. In March, NASBA was still posting in the early AM. My husband got up for work at 4:45 am, checked my score and then came up and rubbed my back. The way he rubbed, I thought I failed. He didn’t say, “Honey, you passed!!” Instead, he said “Honey, your score is posted.” I ran down, hit F5 and there it was: 81!!! I couldn’t believe it. I passed!!!!!! It was an amazing feeling and it definitely gave me the boost I needed to continue my studying.

I studied the same way for REG. I took the exam April 3, 2009. I wasn’t as nervous that time, and there was no vomiting in the parking lot. I didn’t feel like I nailed the REG exam, but I didn’t feel as bad as I did for AUD. I thought to myself that if I felt that awful for AUD and passed, I must have passed. It was hard waiting for the score, especially since I scheduled BEC for May 15, and couldn’t focus on studying. When the grades were posted, I got an 82! Two down, two to go. The pressure on me started to increase. My coworkers knew I passed the first two, first try and while they were happy for me, I felt there was a part of them that wanted me to fail.

I thought BEC was the least difficult of the exams. I love math and word problems and BEC was all those type of questions. When I took BEC, I knew I passed. I was actually surprised that I only got an 83.

Lastly, I had FAR. My brother was getting married, the kids were out of school and it was very distracting. I fell into the trap that I had avoided up to now: I allowed too much time from beginning to test date. After starting to study June 1st, I scheduled my exam for August 3, 2009. But I wasn’t ready. I hate Financial Accounting and journal entries. I hadn’t finished studying the way that had worked for me the other three times.

I postponed to the 5th, but I still wasn’t ready. I couldn’t focus, couldn’t study. Knowing what I know now, I would have taken FAR first. The class I signed up for was ARBF, and that is what I did. I was just drained and tired of studying. I postponed until October 10 (NTS expiring) and decided to take the month of August off and start fresh in September. But that isn’t really who I am and it bothered me that I had given up.

We had a family BBQ scheduled for the last weekend in August, but then it looked like we were going to get hit by Hurricane Danny. I canceled the BBQ and decided if I checked Prometric and there was an appointment available for the 31st, I was going to take off from work, study for the next 5 days and get this freaking test over with. I checked, there was a 4 pm appointment and I signed up. I studied 12 hours a day for the next 5 days, but went to the exam feeling I wasn’t prepared.

I felt good on the MCQ, but bombed the sims. For one of the communications, I was asked to explain something to my boss. I drew a complete blank and thought to myself, what would I do in real life??? So I wrote that unfortunately I didn’t know the answer to his question, but I would get back to him tomorrow. As I wrote that, I knew I failed. After passing the first three parts, I was going to have to say I failed a part. It was horrible, but at least the wait for scores wasn’t too long. On Wednesday, September 23, 2009, I came home at 8:40 pm, walked up to my computer, pressed F5 and waited for my failing score to appear. Instead, I saw an 81. I though great, I put in my AUD launch code, but no, it was my FAR score: 81!!! I was done.

I have had a grin on my face for the last three days. I can’t believe I finished the exam. I will have my two years experience on July 11, 2010. I turn 40 on 9/11/2010. My goal to be a CPA by forty will be reality. I will never again have to wonder if I am able to support my family.

-Phyllis from New York

Yaeger CPA Review’s CPA Exam Question of the Day for FAR: Governmental Accounting

Jeff - another71.com — Fri, 25 Sep 2009 21:06:04 +0000

Today’s CPA Exam Question of the Day from Yaeger CPA Review Instructor Cindy Simpson, CPA, CMA, CIA covers Governmental Accounting for the Financial and Accounting section of the Exam. Yaeger CPA Review provides these exclusively to the readers of another71.com.

2009 Wiley FAR, Module 19 (Governmental Accounting), MCQ 44, Page 894.

In December 2007, the general fund of Millard City received $25,000 from the state as an advance on the city’s portion of sales tax revenues, and it received $20,000 from property owners for property taxes to be levied in 2008. The advance payment of sales taxes represented the amount that the state collected in 2007 that would have been distributed to Millard in the early part of 2008.

Millard used the advance to pay for expenditures incurred by the general fund in 2007. The cash received from property owners for property taxes to be levied in 2008 will be used to pay for expenditures incurred in 2008.

In accordance with GASB 33, Accounting and Reporting for Nonexchange Transactions, what amount of revenue from these transactions should be reported by Millard’s general fund on the statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 2007?

A. $25,000
B. $20,000
C. $0
D. $45,000

The Wiley answer on page 906 states that [A] is the correct answer because only the $25,000 received from the state as an advance of sales tax revenues meets the GASB 33 requirements for recognizing revenue under the modified accrual basis of accounting; the modified accrual basis requires that revenues be recognized when they are both measurable and available. Here is some additional explanation for why [A] is the BEST answer.

First of all, this is a question which involves the modified accrual basis of accounting. The two clues that indicate the modified accrual basis are:
(1) the general fund, which is one of the five governmental funds (the governmental funds use the modified accrual basis) and
(2) the statement of revenues, expenditures, and changes in fund balances (expenditures are used in the modified accrual basis).

Under the modified accrual basis, revenues are recognized when they are both:
(1) measurable: you can come up with a figure and
(2) available: you will collect the money by the end of the year (balance sheet date) or within a short time after the end of the year so that you can pay the bills for that year.

For example, for the money to be available in 2007, you have to be able to pay the bills for 2007 using that money. If you cannot use the money to pay the bills of 2007, then you cannot call it revenue in 2007. What makes this question so tricky is that they call the 2007 sales taxes received in 2007 an “advance” and they receive the 2008 property taxes in 2007.

Because the $25,000 of sales taxes received will be used to pay 2007 bills, you can recognize it as revenue in 2007. But, because the $20,000 of property taxes received will be used to pay 2008 bills, you cannot recognize it as revenue until 2008. Therefore, the best answer is $25,000; the answer is [A].

Some other notes: In this question, Millard City collected the money before December 31, 2007 (the balance sheet date), but that may not be the case in questions on the CPA exam. There are some tricky rules about how quickly you must collect the money after the balance sheet date in order for that money to be “available.” Specifically for property taxes, you must collect the money within 60 days of the balance sheet date; for other types of taxes, you must collect the money within a reasonable time after the balance sheet date, such as 180 days. But, don’t forget . . . you can only call it revenue in that year if you use the money to pay the bills for that year, regardless of how quickly you collect it. Also, under GASB 33, sales taxes are “derived” nonexchange revenues and property taxes are “imposed” nonexchange revenues.

***

Have questions? Need help? Take advantage of this opportunity from Yaeger CPA Review.

Here are the guidelines for submitting CPA Exam questions:
1) This is open to all current CPA Exam candidates
2) Questions submitted can only be from the 2009 Wiley CPA Review 4-volume textbooks
3) Questions can only be in multiple choice format, (no simulations)
4) Questions need to be emailed directly to Yaeger CPA Review at phil4help@aol.com

Get the complete Yaeger CPA Review FAR HomeStudy course for only $345

AICPA Announces CPA Exam Changes; IFRS testing begins January 2011

Jeff - another71.com — Fri, 25 Sep 2009 15:34:49 +0000

Get a good CPA Exam review course and pass the CPA Exam in 2010.

The CPA Exam is officially changing in January 2011. In addition to IFRS being tested, portions of all four Exam sections will change – some significantly. As discussed at the August 2009 meeting in New York City, the new Content Specification Outlines (CSOs) would be coming in September 2009 and it was just released.

You can read about the changes to the CPA Exam here.