Exam day study tips and advice collected from CPA Exam Club's Study Groups (see comments).
In FAR is very important to focus on concepts, ask yourself why things are done a certain way while you read your book or most importantly when doing mcqs. That why when the real test asks you questions in a different way you will be able to decipher the answer. Do not memorize the answer, be skeptical and question why things are done in that way. - Carlos C.
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I did not do any MC or sims while studying for FAR. I found early on in my CPA review adventure that I do not learn well by guessing wrong answers all day. But I know that is a common way to prepare for most.
Like I said, I went over my materials like 20 times, after each page I see if I can recite what I read before moving on to the next page. A similar tactic was used for the flashcards. I did use audio for a while also. And right before the exam I found some videos on YouTube for government/nonprofit as I did not take that course in school.
Most exam questions really come down to do you include a number or not. Memorizing lists and rules ( and exceptions to the rules ) help out the most on exam day. - Tim D.
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Q: So there's 10-15 minutes before you have to click start before the exam. What are the one or two most important concepts you recommend putting on your scratch paper before the test? - Jenn S.
- Any formulas that u are weak on - Jennifer T.
- Most likely, ratio formulas. Maybe EPS formulas. Any concepts or ideas you have a hard time remembering...not a bad idea. - Maryanne S.
- Just click "start" don't add any more painful minutes! I know it helps some people to just memory dump on the note paper. But my logic is, you either know it or you don't. Plus, whatever you write down may not even come up! Why waste time and potentially confuse myself. Just my thinking, to each their own! You will do great regardless! - Bennet A.
- I found it helpful to write it down before the exam because here is the thing, at least that was my experience, I read the question and start trying to remember the formula then I started to doubt whether it was net sales or net income the nominator for my formula. That being said u remember it and write it down. if you happen to need that formula or whatever it is that u wrote down, u reference what u wrote instead of panicking and confuse your brain with the confusion they add to the questions - Juleita F.
- Pension expense, eps and deps is what i did. Also govt funds by category. - Bernice G.
- Pension, Lease & Bond formulas...also Impairment Formula -2 Step method - A.B.
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More points are lost or more simply not earned on the SIMS than lost on the MCs from wrong answers. Think!: The test is graded lologarithmically Once the 18 pre-test questions are eliminated and the 72 scored - everyone will be bunched close together. Where can you stand out and turn a bad test into a possible 75? No one thinks about this but its true. THE SIMS ---- study the SIMS and try to touch all possible subjects they could be on - do all the practice SIMS. Practice the research questions, etc. that's my advice - good luck! - Christopher P.
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Re: weak areas...Work with it a while and you will figure out for yourself the areas that you have trouble with as you go through it. Take some time each day, when the books are closed and the studying is over, to think for about 10 mins on what you covered that day. Walk through a scenario or two (an example problem) in your head and make sure it makes sense why we account for it in that way. These little reviews each day are an awesome tool to help you remember. Also, I find it beneficial to study every day, but on two days a week (usually days that I have less time than normal study days) I review what I've covered since my last review. So tuesday and friday evenings are review days for me. On tuesday, I review all of the material I have covered since the prev Friday when I reviewed. Works great. - Steve B.
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Make sure to understand the concepts rather than memorize. If you get the general logic in each topic then the JEs fall into place. I used CPAExcel and kept taking MCQs in study mode so I would learn what I missed. I also did two practice exams where I simulated what exam day would be like to take some pressure off. Also, I took my breaks during the exam. I broke out my time table so I could take 5 min breaks between each section and had a granola bar for a snack before the TBS. I passed with a 79, not a super high score but enough to pass. Hopefully this helps! - Victoria I.
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Repetition of the topics. The more you go over each section, you tend to pick up more info each time. Work the sims and do practice exams. - Joshua M.
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I reviewed 20 questions a day from the previous chapter. In other words while I was working on 2 I would do 20 questions that I missed from 1 and so on. The questions I missed I marked in the software and printed them out and put them in a binder. In the end I had 10 binders one for each chapter. In addition I used Becker flashcards. I added to them with the passkeys and call outs for the differences between gaap and ifrs from the book. I reviewed a chapter of flash cards each night before I went to bed. The SIMMS I only attempted once because they took too much time. - Todd D.
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Hi guys, I feel like my wheels are spinning on the same spot on Bonds. Help! - Kingston G.
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Try to put it into a logical context. If you "issue" bonds, you are borrowing money. Somebody gives you money and you promise to pay them interest every period and the principal amount at the end of the contract term. If the market rate is higher than the contractual rate, then the market bonds are more attractive, so you have to discount your bonds to make them competitive. If the market rate of bonds is lower than your contractual rate, then your bonds are very valuable and sell for more than par (premium).
Study the journal entry for issuing bonds: Dr: Cash Dr: Discount on BP, Cr: Bonds Payable. Conversely, if it's a premium, then the premium entry goes on the same side as the Bonds Payable, a credit. If you remember this and understand this, you can solve any problem with bonds.
When time passes and you amortize the discount, the amortization entry goes on the opposite side of the original discount entry. As long as you understand the original journal issue for issuance of Bonds, you have it mastered. Everything else is just logically tracing it out to the proper period and answering the question. Hope this helps. Good luck!!
Oops, let me make this last part a little clearer. If the original issue was a discount, therefore a debit to Discount on BP, then when you amortize, the discount will be a credit - opposite of the original entry.
Always set up a makeshift amortization table when using the effective interest method. Makes it all clear. You can trace out your carrying amount to any period it asks for. Usually, however it will only be a period or two into the future, because of time when using the effective interest method. If it's the straight line method, which is often used on the exam, its even easier. Calculate the total discount on the bonds at issuance, then divide it by the number of periods under contract and that's your entry for every period. Same journal entry every time for straight line method.
When you calculate the original discount, remember if it's $500,000 of bonds, and they sold for 450,000, then your discount is 50,000. You will be amortizing that discount over the contracted period of the bonds. Only two ways - effective interest method or straight line. Try to understand this conceptually, and you will learn to LOVE bonds. They are a very neat way for corporation to raise money and spread the borrowing over hundreds/thousands of creditors.
(effective interest method) Just take it one step at a time. What is the total amount of the bonds? Then what is the discount or premium? Then how often are payments paid? Then ----> Set up the amortization table. Remember interest expense is simply the carrying value times the market rate of interest (adjusted if needed for semi-annual payments). and the payment is the Face Value times the contractual interest rate (adjusted for semi-annual payments if needed). Set up the table and plug in these figures and you can answer ANY question.
The difficulty most people have with bonds is that when the problem is presented, there is SO MUCH information and it's easy to get confused. But take it one step at a time, and make that amortization table. And be sure you can do the straight line method, because the CPA exam uses it a lot, according to my study materials. - Steve B.
Tim Gearty, CPA, MBA, JD, CGMA shares some tips and tricks for the Financial Accounting & Reporting (FAR) Section of the CPA Exam.
Tim Gearty, CPA, MBA, JD, CGMA shares some tips and tricks for the Auditing & Attestation (AUD) Section of the CPA Exam.