lots of level 1 topics in FSA?

CFA Level II
#1

was it just me, or were there couple of level 1 questions in the financial statement sections? like… cash from customer … (and luckily i remembered), = sales - (change in AR) + (change in UR). and i was stumped on couple that I thought were clearly level 1 material!!

#2

Sh!t what’s change in UR. I used this I think. cash collections = sales - change in AR

#3

yep i neglected the unearned revenue part and went with just sales and A/R super sharp shooter:0 CFAi:5029304592135

#4

^whats up with that number? has CFAI tagged your account and IP address?

#5

I remember this problem. When I ran the numbers through, my result was different from the answers by $7. I could not figure out why, so just picked the closest number.

#6

topher Wrote: ------------------------------------------------------- > Sh!t what’s change in UR. I used this I think. > > cash collections = sales - change in AR Unearned Revenue - A liability. The company receives payment from the customer but is yet to have provided the product/service. When the product/service is provided, it flows through the income statement.

#7

I am not sure about cash collections from customers. I took them before bad debts (add back bad debts to AR before calculating cash collections)

#8

did you guys get: 20, 22, or 24? I got 24 for this

#9

Sales from customers = Revenues- (INCREASE in A/R - INCREASE in unearned) In this case, A/R increased and unearned decreased. A decrease in unearned revenue is not a collection from a customer. Unearned revenue is an upfront payment for a service that has yet to be performed.

#10

I got close to 22, but not feelin great about my answer… might be another one in the count to 36

#11

I went with the A 20 answer. Haha. So far we have one of each. B was the answer if you exclude unearned revenue I think and just use sales - change in AR.

#12

It was definitely A, you had to take UR in account, saw same question in one of Schweser practice test before

#13

I took previous A/R, added Sales, and subtracted current period A/R. I hope that was right!

#14

I did the following: revenue - increase in AR - decrease in UR, but I got 20.07 or so, and I went with $20 or chocie A.

#15

i got 22 here… looks like -1 i guess

#16

Obviously you subtract the increase in AR from Sales. But you only subtract an increase in UR. Since UR decreases over the year, the answer was simply sales minus increase in AR. Decreases in UR don’t affect CC. It’s just inventory (or whatever) going out the door.