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qualler
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| Posted: 18 May 2009 at 15:01 | IP Logged
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It's the same thing with direct or indirect -- you just take expenses into account for the direct method because you don't start with your cash from operations with Net Income like you do with indirect. Just follow the method that I showed above and you'll be fine.
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FAR - 56, 65, 67, 71, *78*
BEC - 60, 69, 71, *81*
AUD - 54, 67, 72, 74, *81*
REG - 49, 51, 66, 65, *78*
Ethics - *90*
Qualler, CPA
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jlfeldes
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| Posted: 18 May 2009 at 15:09 | IP Logged
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Thanks much appreciated
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FAR 5/21/09
AUD 82
REG 93
BEC 77
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jlfeldes
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OOO IM SORRY BUT HOW DO NOT CASH TRANSACTIONS AFFECT THIS METHOD
LIKE DEP EXP!
THanks
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FAR 5/21/09
AUD 82
REG 93
BEC 77
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qualler
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| Posted: 18 May 2009 at 15:17 | IP Logged
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A/D Yr 1 - 1,000
A/D Yr 2 - 2,000
Change in A/D - 1,000
Fake Cash 1,000
A/D &nb sp; 1,000
It's the same as adding back depreciation expense to Net Income in the Indirect Method because there is no actual cash movement with those types of items. Depreciation expense reduces net income, but it does not change net income by increasing or decreasing cash, so it is an addback. Basically, though, the Fake Cash method allows you to do those addbacks / takeaways without thinking about the mechanics of what you're doing.
__________________
FAR - 56, 65, 67, 71, *78*
BEC - 60, 69, 71, *81*
AUD - 54, 67, 72, 74, *81*
REG - 49, 51, 66, 65, *78*
Ethics - *90*
Qualler, CPA
The Blogulator
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anewfoundsin
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just curious if anyone else watched all the lectures first and then did the MCq's? Is this is a good technique? I'm just starting with my first chapter and I am eager to go the 2nd section without doing any Multiple Choice
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PASSED: FAR, BEC, REG, AUD 2011
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Topic: FAR - Yaeger Students
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