Videos uploaded by user “SuperfastCPA”
Excel Vlookup Tutorial and Example
Visit http://www.accounting101.org This is a tutorial for how to use Vlookup in Excel to lookup and pull data from a vertical table.
Views: 523936 SuperfastCPA
How I Passed All 4 Sections of the CPA Exam in 3 Months
Here's the full page: http://www.accounting101.org/how-to-pass-the-cpa-exam-in-3-months/ In this video I'll show you how to pass the CPA exam fast, which is exactly what I did to pass all 4 sections in just 3 months.
Views: 128257 SuperfastCPA
Get the Day of the Week From a Date in Excel 2010
In this video I'll show you how to get the day of the week from a regular date in Microsoft Excel 2010.
Views: 8062 SuperfastCPA
Entries for Capital Leases- Lessee Entries
http://www.accounting101.org An example problem on how to do lessee entries for capital leases.
Views: 12386 SuperfastCPA
Failed a CPA Exam? How to Retake It and Pass
In this video you'll learn how to effectively study for a retake of a CPA exam section that you failed
Views: 5928 SuperfastCPA
The Accounting Equation
http://www.accounting101.org/accounting-equation/ Every transaction that happens within a business has an effect on its financial position. The accounting equation is what keeps all of the transactions in balance and helps users of the information make sense of what areas each transaction affects. The financial position of any company is based on the following items: Assets: what the company owns Liabilities: what the company owes to other parties Owners' Equity: the difference between assets and liabilities The Accounting Equation The basic accounting equation simplifies our understanding of how these three areas of the company relate to each other. The basic accounting equation for any given business is: Assets = Liabilities + Owners' Equity Assets are the things that the company owns, or its resources. Assets are things like cash, accounts receivable, inventory, prepaid insurance, buildings & equipment, land, and goodwill. Remember that total assets will always equal liabilities + owners' equity. That's exactly what a balance sheet means... because the assets, or the left side of the balance sheet, will always equal liabilities + owners' equity, or the right side of the balance sheet. Liabilities are the company's obligations, or the amounts that the company still has to repay to other parties. Liabilities can be notes payable, accounts payable, wages payable, interest payable, bonds payable, or income taxes payable. Liabilities can be viewed as bills that the company has to pay, or as the part of the source of acquiring their assets. For example, if the company bought a new delivery truck for $20,000 using a $20,000 loan from the bank, then the company has an asset of $20,000, as well as a liability of $20,000 to pay back to the bank. Notice that the asset equals the liability in this example. Owners' equity is the amounts invested by the owners of the company plus the cumulative net income that hasn't been taken out or distributed as dividends to the owners of the company. Difference Between the Balance Sheet and the Income Statement As we already mentioned, the balance sheet is called the balance sheet because the accounting equation will always balance... meaning the assets side of the balance sheet will always equal the same as the liabilities + owners' equity. There is also a big difference in the format of the balance sheet versus the income statement. The balance sheet gives a company's financial position at any given point in time, where as the income statement is a report of activities over a given time period.
Views: 146869 SuperfastCPA
How To Do A Balance Sheet
http://www.accounting101.org/how-to-do-a-balance-sheet How to do a balance sheet: a balance sheet is a financial document that shows the assets, liabilities, and owners' equity of a company at a given point in time. It's different from the income statement in that it is a snapshot on any given day, whereas the income statement spans a time period. Most companies prepare their balance sheets quarterly and yearly. How To Do A Balance Sheet To put together a balance sheet, you'll obviously need all of the financial data from your different trial balances. In reality, the information for a balance sheet starts with the individual transactions, but the purpose of this article is just to show you how to organize a balance sheet. First of all, there are two sides to the balance sheet: the right and left side. On the left side, you'll have your assets. On the right side, you'll have two sections: liabilities and owners' equity. The left and right side will always be equal, and the main balance sheet equation is: Assets = Liabilities + Owners' Equity This makes sense because the Assets are on the left side, and it will always equal what is on the right side, which is the Liabilities and Owners' Equity accounts added together.
Views: 808122 SuperfastCPA
Accounting For A Business Combination With Goodwill
http://www.accounting101.org An example problem of accounting for a business combination involving goodwill
Views: 27183 SuperfastCPA
2017 CPA Exam Changes
Full post here:http://www.superfastcpa.com/2017-cpa-exam-changes/ In this video we’ll walk through the upcoming changes to the 2017 CPA exam. In 2017 there will be several major changes to the CPA exam. The AICPA released an exposure draft titled “Maintaining the Relevance of the Uniform CPA Examination”, with the purpose of tailoring the CPA exam to the market demands of a “higher-order” skillset that CPA candidates need to demonstrate. After reading through the exposure draft and seeing the upcoming changes, it’s safe to say that the CPA exam will likely get even harder. Here’s a summary of the changes... The biggest change is that there will be the added element of “analysis” to the 4 sections. Currently the exam assesses 1) remembering and understanding- which is tested through the MCQs- , and 2) application - which is tested on the task-based simulations. On the 2017 exam, there will be a shift to test “higher order” skills such as “analysis” and “evaluation”. So each of the 4 sections are currently 50% remembering & understanding, and 50% application. So the new breakdown looks like this: For AUD, there will be 30-40% remembering & understanding, 30-40% application, 15-25% analysis, and 5-15% evaluation. AUD will be the only section to test “evaluation” For BEC, 50-60% will be application, 15-25% will be remembering & understanding, and 20-30% will be analysis. For FAR, 50-60% will be application, 10-20% will be remembering & understanding, and 25-35% will be analysis. For REG, 35-45% will be application, 25-35% will be remembering & understanding, and 25-35% will be analysis. These changes will take place by having roughly 10-15 fewer MCQs per exam, and 2-3 more simulations per exam. The simulations previously only tested “application” but the new simulations will assess application, analysis, and evaluation. So on the 2017 CPA exam, FAR, REG, and AUD will contain 8-9 task-based simulations. BEC will now have 4-5 task-based simulations in addition to 3 written communication modules. The 2017 exam will introduce a brand new type of simulation called a “Document Review Simulation” (DRS), which presents a realistic document you might see in practice as well as source documents, and there will be highlighted words, sentences, or phrases which the candidate will then evaluate and select appropriate edits based on the source documents. The simulations on the 2017 exam will also include more background material and require more evaluation by the candidate to determine what information is or is not relevant to the question, which better reflects real-world practice. Another big change is that BEC and REG will go from a 3 hour time limit to a 4 hour time limit, to allow for the increase in simulations and higher skill level being assessed. So, each section will now have a 4 hour time limit. Due to the increased time limit, it is estimated that the exam cost of BEC and REG will each increase by $20. Another change is that instead of the current “spreadsheet” tool that’s used during simulations (which we can all agree doesn’t work very well), the new exam will feature Microsoft Excel- but this addition probably won’t happen until 2018. So, that is a summary of the main changes to the upcoming 2017 exams. It’s good motivation to pass before then, or at the very least give you an idea of what’s to come.
Views: 4770 SuperfastCPA
Vlookup Tutorial and Example: How to Use Nested Vlookup
This video walks through how to use a nested vlookup function to find data from multiple tables in Microsoft Excel.
Views: 4558 SuperfastCPA
SuperfastCPA Review: Passing FAR While Working 80 Hours a Week
https://www.superfastcpa.com/superfastcpa-reviews-nikki-passed-far-working-overtime/ Hi, my name is Nikki and I just passed FAR with a 77 using SuperfastCPA notes and then the audio notes as well. I am an average student; I get A’s, B’s, and C’s in college. I have my master’s in accounting as well. I have a job with the big four in public accounting and I’m trying to get my CPA. Like many people, I probably should have gotten my CPA the summer before I started work, but I wanted to enjoy the summer because I thought, “Oh, well, when I’m working I’ll have more time” like, I don’t have time in school and anyone who’s in public accounting knows that you don’t have a lot of time at all. And so, with the SuperfastCPA notes, I was able to pass FAR on my first time when I was not able to do that with a lot of the other exams using BECKER. I used BECKER for the multiple choice, but with FAR I used the SuperfastCPA notes. So, what I did was, I printed all the notes one sided and then on the reverse side I was able to take my own notes and emphasize things that I got wrong, right up journal entries, things like that. And so, pretty much I would just go through… well, I started using BECKER and then I just honestly couldn’t keep up because anyone who is using BECKER for FAR, there are ten chapters with a lot of material in them and it’s very hard to keep up and very hard to even take notes on because they say everything is important. So, pretty much, I just would follow the multiple choice in BECKER and then whatever title it had, I would go back to the SuperfastCPA notes and it would basically summarize the things that I really needed to know for the exam. And I was working 80 hours a week on a very tough project and I did not have time to study at all and so I would listen to the audio any spare chance I had, even throughout the day if I had a chance. And then I would go home and I would just do multiple choice and then I would wake up early a lot of mornings and do multiple choice as well. And when it came to exam time, I took the exam and I didn’t think I was going to pass, but I did. I did. I passed with a 77 and everything that I needed to know I knew and SuperfastCPA, their notes are so condensed; it doesn’t waste your time. If you’re a busy person and you need notes to study, I highly recommend SuperfastCPA because working as much as I did, I think that if I used the FAR book from BECKER, I don’t think I would have passed. SuperfastCPA really showed me exactly what I need to know for the exam and how to specifically answer the questions. So, good luck to everyone on their CPA journey.
Views: 8920 SuperfastCPA
A Balance Sheet Example
http://www.accounting101.org/balance-sheet-example The balance sheet is easy to understand... once you understand why what goes where. The balance sheet example on this page, as well as the video, will help explain what the balance sheet is, how it's organized, and how to interpret the information on it. The balance sheet is an extremely useful tool for all users to quickly get an idea of how a company is doing. The balance sheet is usually described as a snapshot of a company's financial position. This is because the balance sheet is accounting for a single moment in time; not over a period such as the income statement. You'll notice in the example below, that the date is December 31, 2011. It basically means, "this is what we have, and this is who owns it as of today, December 31st, 2011." In contrast, the income statement would show a time period, such as "for the period ending December 31, 2011." As you can see in the example above, there are three major parts or sections that make up the balance sheet. These are: Assets Liabilities Owners' Equity Assets are the things the company owns. These are things such as cash, accounts receivable, inventory, prepaid insurance, prepaid rent, and goodwill. There are basically two classifications of assets; current assets and fixed (or long-term) assets. Current assets are assets that will be used within one year. Current assets include cash, accounts receivable, inventory, prepaid insurance, and prepaid rent. There are other types of current assets, but those are the most common. Fixed assets are assets that will be around for longer than one year. Fixed assets include buildings, equipment, goodwill, and land. Asset accounts have a debit balance. Liabilities are the obligations that a company has to repay. A liability could be amounts owed to a creditor, or to a vendor for supplies and inventory. Some examples of liability titles that you'll see are notes payable, accounts payable, wages payable, interest payable, income taxes payable, bonds payable, and unearned revenue. An easy way to spot a liability is anything that has the word "payable" in it. This obviously means an amount that still has to be paid, and will always represent a liability. Another type of liability is when a company receives payment for a product or service that they haven't delivered yet. This is called unearned revenue. Like assets, liabilities are also classified into both current and long-term liabilities. The same rules apply: a current liability is an obligation that has to be repaid within one year, and a long-term liability is an obligation doesn't need to be repaid within a year. Liability accounts have a credit balance. Owners' equity, or stockholders' equity is basically the portion of the assets that the owners of company own. Since assets=liabilities+owners' equity, the assets of the company are either owned by someone external such as a creditor, or they are owned by the owners of the company, usually in the form of stockholders. The account titles in the owners' equity portion of the balance sheet are usually common stock, preferred stock, paid-in capital in excess of par, and retained earnings. Owners' equity accounts have a credit balance.
Views: 304848 SuperfastCPA
IFRS vs GAAP CPA Exam Questions
Here are 5 questions on the difference between GAAP vs IFRS that you’ll see on the CPA exam.
Views: 2845 SuperfastCPA
CPA Study Motivation Tip #1 - Make the All-In Commitment
Get the full guide here: http://www.superfastcpa.com/free If you’re looking for motivation tips for studying for and passing the CPA exams, then you’ll find this video series very valuable. In this video, we’ll cover tip #1 of 31, and it’s the “difference-maker” that has nothing to do with studying. So tip #1 is to make the “all-in” commitment. That might sound extremely cliche, boring, and unhelpful, but let me explain what I mean… Fully committing to the overall process – and being willing to do whatever it takes – can easily be the difference between candidates who pass and candidates who fail. Embrace the Grind Valuable things take a lot of work, and passing the CPA exams is no different. Getting the CPA is the most high-leverage thing you can do for your career, but it’s going to be a long, hard process. There will be many days – more often than not – that the last thing you’ll feel like doing is sitting down and grinding through a few hours of CPA study. It helps a lot to simply think through that fact, and just accept it. Accept that it’s going to be hard, that it’s not going to be very fun, and that it’s going to take a lot of time and effort. But… if you put together a plan & overall strategy, and then execute that strategy, the study process and passing each exam can be very rewarding and satisfying. That leads us to the next step… Have a Clear Plan & Strategy As mentioned above, consistently studying day in and day out quickly becomes a mental and emotional struggle for most candidates. The way that you turn this around is by having an overall plan and strategy that you’re confident in, that you know will pay off. Then, as the weeks go by, you feel more and more confident where most candidates feel more and more stressed out and overwhelmed as the test gets closer. A.B.S. – Always Be Studying Doing your main study session each day goes without saying… You obviously need to study every day to even have a chance of passing the CPA exams. However, in most cases, the once-daily-study-session isn’t enough. You can get dramatically better results by adding in what I call “mini sessions”, which basically means also studying from your phone all throughout the rest of your day, every time you have even just a few minutes. When you walk to the bathroom at the office, instead of pulling out your phone and scrolling through Instagram, read a few pages of review notes or go through a few questions. This habit – and actually making it a habit – was the difference maker for me, and the whole idea behind SuperfastCPA… there weren’t study supplements that were specifically designed to be used from your phone. You also need to be willing to give up your favorite time wasters, both for your main study session and what you do when you pull your phone out. When you sit down to study, there’s an emotional release to spending the first few minutes going to your favorite sites like Facebook or ESPN, but that quickly turns into a 1 to 2 hour rabbit hole. It’s amazing what your subconscious mind will compel you to do to avoid studying. Many a study session have been ruined by the thought, “I’ll just look at my Facebook real quick…” I know this sounds intense, but you need to view any spare minute you have as an opportunity to increase your chances of passing by using it to study, that applies to both 1) making every minute of your daily study session count and 2) putting your smartphone to good use instead of using it look at your favorite time wasters all day. There are a lot more tips in the full guide here: www.superfastcpa.com/free
Views: 704 SuperfastCPA
How to Get Free CPA Flashcards
Register for the free webinar to get free CPA flashcards
Views: 7225 SuperfastCPA
Entries for Capital Leases- Guaranteed Residual Value
http://www.accounting101.org An example problem explaining entries for capital leases that have a guaranteed residual value.
Views: 8507 SuperfastCPA
Stockholders' Equity Transactions
http://www.accounting101.org/ An example problem on stockholders' equity transactions.
Views: 7482 SuperfastCPA
Why Are the CPA Exams So Hard?
What makes the CPA exams so difficult?
Views: 320681 SuperfastCPA
Operating Loss Carryback and Carryforward
http://www.accounting101.org How to account for an operating loss carryback and carryforward.
Views: 12159 SuperfastCPA
How SuperfastCPA Can Help You Pass the CPA Exams Fast
Attend a FREE training session to discover exactly how Nate studied in order to pass all 4 CPA exam sections in 3 months. http://www.superfastcpa.com/training You can apply this study approach using your current materials - it doesn't matter what review course you're using. Register here: http://www.superfastcpa.com/training
Views: 7904 SuperfastCPA
How to Pass the CPA Exam on the First Try
Full post: http://www.accounting101.org/how-to-pass-the-cpa-exam-on-the-first-try/ In this video I’ll give you some of my best tips about how to pass the CPA exams on the first try.
Views: 12261 SuperfastCPA
SuperfastCPA Reviews: What Real CPA Candidates Have to Say
These are real reviews of SuperfastCPA products from real CPA candidates
Views: 1934 SuperfastCPA
Accounting for Performance-Based Compensation: Stock Options
http://www.accounting101.org An example problem for accounting for performance-based compensation with stock options.
Views: 3427 SuperfastCPA
A Review of the CPAexcel Review Course
In this video I show you inside CPAexcel and what you can expect.
Views: 2094 SuperfastCPA
Discount and Premium Amortization on Bonds
http://www.accounting101.org An example problem on discount and premium amortization on bonds.
Views: 17578 SuperfastCPA
Calculate Completion Date of a Project in Excel 2010
In this video you'll learn how to calculate the completion date of a project in Microsoft Excel 2010.
Views: 1477 SuperfastCPA
What Is Accounting?
http://www.accounting101.org/what-is-accounting What is accounting? Accounting is the language of business. It's purpose is to communicate the financial position and activities of an organization. When you learn and then understand accounting, you'll be able communicate and understand the financial status of any type of organization, business, or operation. The financial information of any business or organization is basically split up into three main parts. These three parts are: Operating Information The operating information is what's needed on a day-to-day basis in order for the organization function. Transactions such as purchasing supplies, paying vendors, paying employees, and recording sales are things that happen everyday and need to be recorded and tracked. The daily operations make up the majority of the accounting transactions, and they are the basis of the financial and managerial accounting information. Financial Accounting Information The financial information of an organization is the information that the stakeholders of a company are interested in. The stakeholders can be the owners, managers, shareholders, creditors, the government, the public, or anyone else that has an intrest in the performance of the company. For example, the shareholders of the company (people that own stock in the company) want to know how well their investment is doing, and whether they should buy more shares or sell the shares that they've got. The managers of the company can use the financial accounting information to compare how their business is doing compared to the competition. The creditors of the company, such as banks or bondholders, can use the financial accounting information to determine if the company will be able to repay its loans. Managerial Accounting Information The managerial accounting information is the information that managers use to make decisions about the day to day operations of the business. The managers use this information primarily for planning, implementation, and control. These three main sections of accounting are all part of the big picture. All of this accounting information is organized and put into specific financial statements that make it easy to understand the financial status of any given organization. There are 3 main financial statements that any public company is required to prepare: The Balance Sheet The balance sheet is a statement of an organization's resources at any given point in time. It shows the relationship between the assets, liabilities, and equity of the organization. The Income Statement The income statement is just what it sounds like, it's a report of the revenues and expenses of an organization within a given time period. The Statement of Cash Flows The statement of cash flows is also what it sounds like; a report of the organization's cash as it flows in and out of the business. The main purpose of accounting is to provide information that is useful and relevant to the interested parties so that they can make decisions about the company and it's operations.
Views: 3314 SuperfastCPA
Excel Vlookup Tutorial Using an Exact Match
http://www.accounting101.org This video shows you how to use the vlookup function in excel using an exact match. Usually you'll use an exact match when you're referencing text instead of numbers.
Views: 1365 SuperfastCPA
Accounting for Trading Securities
http://www.accounting101.org/introduction-to-accounting/ An example problem on accounting for trading securities.
Views: 3164 SuperfastCPA
CPA Study Motivation Tip #4: 4 Steps to Unlimited Motivation
Get the full guide here: http://www.superfastcpa.com/free In this video you'll discover a simple 4-step framework that will provide unlimited motivation to study for and pass the CPA exams.
Views: 588 SuperfastCPA
CPA Study Time Management Tip #7: How to Guarantee You're Making Progress
Get the full guide here: https://www.superfastcpa.com/free In this video you'll discover the best 2 hours of the day to study, and how to guarantee you're making progress on your CPA exam study.
Views: 286 SuperfastCPA
How to Pass the CPA Exam the Easy Way
Thank you for download the CPA exam cheat sheet
Views: 1691 SuperfastCPA
Superfast CPA Video Course
The Superfast CPA course is your guide to hacking the CPA exams and cutting months off the time it takes you to pass all 4 sections. Click here: http://www.accounting101.org/superfast-cpa/
Views: 30882 SuperfastCPA
SuperfastCPA Reviews: How Jared Used SuperfastCPA to Pass All 4 Sections
In this SuperfastCPA review, Jared shares how he used SuperfastCPA to pass his CPA exams after struggling with the amount of information in his review course. Full post here: https://www.superfastcpa.com/superfastcpa-reviews-jared-used-superfastcpa-pass-cpa-exams/ “Hi, guys. My name is Jared. I’m a CPA. And I pretty much had every bit of that thanks to SuperfastCPA. About two years ago, I finished my master’s degree and decided I would apply to sit for the CPA exam. I was accepted as a candidate and I started studying. I started with FAR because I heard that you should start with what you do on a daily basis because that’s typically going to be the easiest. About a month and a half into studying, I took a review test and realized that I didn’t remember anything from a month ago and with two months of studying left to go, I figured this is going to be pretty much impossible, so I gave up. About a year after that, I accepted a position with another company with one condition being that I had to finish my CPA in 12 months. I asked if I could have 18 so I could have six months to get used to the job and then another 12 months to study for the test because most people can pass within a year. Well, my about four months came up and I realized, okay, I better start getting serious and start studying. So, I started studying for FAR again and I realized after watching the videos, actually hand writing notes, reading the textbooks that came with the study software and everything like that, that I could not remember anything I had studied in a month and a half ago and that I was probably going to fail this test. So, I’ve got kind of, not depressed but kind of down on myself and realized this is going to be very hard, this a better job, higher pay, higher level, I really don’t want to lose it because I can’t pass this test. So, one day I was browsing through Facebook and I see an ad pop up saying, “I passed my CPA exam in three months” and I thought, well, I highly doubt that but, worse that can happen is get some spyware on my phone. So, I clicked on the link and I followed through it and I read the introduction and Nate actually show you his scores showing that he did, in fact, pass all three tests in three months. And in fact, he shows he failed the first one and then managed to take two within another month and a half or so. So, I thought, “Okay. This might not be such a bad idea.” So, I ended up buying the study program and it was absolutely worth every penny. His methods allowed me to finish all four tests in about nine months and two tests actually delayed a month because of family problems that arose, and I didn’t study at all during that month. I was still able to come back and pass those on the first try. So, I did fail one test and that’s because that morning I had a terrible morning, kind of went in with a bad attitude, but just studied for it again and passed it with flying colors. So, anyway, I highly recommend SuperfastCPA as it made my CPA experience much better, my family’s thankful, wasn’t as stressed out and again, most importantly, I was able to pass all four tests and now I’m a fully licensed CPA. So, thank you so much.”
Views: 2950 SuperfastCPA
CPA Study Training Webinar
Get our FREE training here: http://www.onlinemeetingnow.com/register/?id=yn8k7awj9o
Views: 42320 SuperfastCPA
Entries for Capital Leases- Lessee Entries
http://www.accounting101.org An example problem about how to do lessee entries on capital leases.
Views: 2200 SuperfastCPA
Start a Smarter Study Plan Today with SuperfastCPA
How to use SuperfastCPA supplements to pass the CPA exams faster. Save 30%: http://www.superfastcpa.com/deal/
Views: 2658 SuperfastCPA
How to Subtract Dates in Excel 2010
In this video I'll show you how to subtract dates in Microsoft Excel 2010 as well as some other basic date functions
Views: 9408 SuperfastCPA
Income Statement Example
http://www.accounting101.org Income statement example: this is a basic explanation of how an income statement works.
Views: 7793 SuperfastCPA
3 CPA Exam Hacks
3 CPA exam hacks to make the study process easier
Views: 4429 SuperfastCPA
Adjustment for Changing Tax Rates
http://www.accounting101.org How to account for changing tax rates to the deferred tax liability account.
Views: 548 SuperfastCPA
FAR Practice Questions: R&D Equipment, Foreign Investments
These CPA exam practice questions are from the FAR section.
Views: 458 SuperfastCPA
Accounting for Stock Options
http://www.accounting101.org Accounting for stock options: this is an example problem about how to account for stock options.
Views: 21509 SuperfastCPA
CPA Study Motivation Tip #5: How Far Apart to Set Your Test Dates?
Get the full guide here: http://www.superfastcpa.com/free In this video you'll discover why it's crucial to be aggressive when you set your exam dates, and why you shouldn't allow yourself to reschedule a test date unless it's absolutely necessary.
Views: 254 SuperfastCPA
CPA Study Time Management Tip #8: Dominate Before You Even Leave the House
Get the full 31 Tips guide here: https://www.superfastcpa.com/free In this video you'll discover 3 ways that you can dominate and "own the day" before you even leave the house.
Views: 296 SuperfastCPA
SuperfastCPA CPA Review: Where to Start
Get the "31 Tips to Pass the CPA Exams Fast" Guide, for FREE, here: https://www.superfastcpa.com/free This guide is the best place to start with the SuperfastCPA philosophy of studying for and passing the CPA exams fast.
Views: 445 SuperfastCPA
What is Section 1231 Property or 1231 Assets
http://www.accounting101.org/what-is-section-1231-property-or-1231-assets/ The term "section 1231 property" or "1231 assets" is a tax term that refers to depreciable business property that has been held for over one year. The types of properties included in Section 1231 are machinery, land, cattle, timber, buildings, natural resources, crops, and leaseholds that are at least one year old. Here's a more detailed explanation: Section 1231 allows businesses to get the "best of both worlds" in regards to the tax treatment of property that falls within the section. It allows the taxpayer to have capital gains treatment if they realize a gain on Section 1231 property, but at the same time allows the taxpayer to treat any loss on such property as ordinary loss. Section 1231 treatment allows taxpayers to enjoy tax favored treatment for 1231 property gains that are greater than losses on such property. This means that if the asset could be sold for a value greater than its basis then it would be taxed at a capital gains rate which is lower than an ordinary income rate. However, if the 1231 property resulted in a loss, then the taxpayer can treat it as an ordinary loss and such a loss may reduce the taxpayer's taxable income. The reason Section 1231 is said to give a taxpayer the "best of both worlds" is that it allows the favorable capital gains tax rate on section 1231 property, while avoiding the negative implications of capital loss treatment. Ordinary losses are 100% deductible while capital losses are subject to an annual deduction limitation of $3,000. So, if capital losses exceed capital gains by more than $3,000 in any given tax year, only a maximum of $3,000 may be deducted; the excess loss over $3,000 must be carried over to the following year. For example, assume in YEAR 1 a taxpayer has a capital gain of $2,000 and a capital loss of $6,000. The $2,000 gain will be wiped out by the $6,000 loss. Since the $6,000 loss exceeds the $2,000 gain by $4,000, only $3,000 of the $4,000 excess loss may be deducted in YEAR 1. The remaining $1,000 must be carried over to YEAR 2. The loss retains its character as short-term or long-term when it is carried over. C corporations are not allowed to deduct capital losses against ordinary income. C corporations must deduct capital losses against capital gains. If capital losses exceed capital gains in any given tax year, the excess loss may be carried back three years and carried forward five years where it is offset against capital gains of those years. When carrying a C corporation's capital loss back or forward, the loss does not retain its character as short-term or long-term. In other words, the loss is treated as a short-term capital loss even if it was originally a long-term capital loss. It is important to remember that Section 1231 does not reclassify property as a capital asset. What it does is even better, allowing the taxpayer to treat net gains on 1231 property as capital gains but to treat net losses on such property as ordinary losses. However, there are important limitations. Congress has decided not to let this "best of both worlds" treatment give taxpayers undesired benefits beyond its purpose. This treatment would compel a taxpayer to sell a §1231 loss asset at the end of a year to get an ordinary loss and hold a §1231 gain until the next taxable year to receive capital gains treatment. In order to control this undesired result, Congress included 1231(c). This is one of controversial topics in U.S. taxation. Care should be exercised to make calculations Under 1231(c), the 1231 gain that was deferred until the second year in the example above will be recharacterized as ordinary income. This is done because the taxpayer has already received the benefit of having the loss in year one treated as an ordinary loss. Thus, if the 1231 gain is disposed of after year one, but before what becomes the seventh year under 1231(c)(2)(A), it will receive ordinary income treatment. If held onto and disposed of after the seventh year, it may be treated as a capital gain. http://en.wikipedia.org/wiki/1231_property
Views: 2933 SuperfastCPA
Diluted Earnings Per Share- Complex Capital Structure
http://www.accounting101.org How to compute diluted earnings per share with a complex capital structure.
Views: 4383 SuperfastCPA
The New Document Review Simulation (DRS) On the CPA Exams
Link to the full post: http://www.superfastcpa.com/explanation-of-the-new-document-review-simulation-drs-on-the-cpa-exam/ What is the new Document Review Simulation on the CPA exam? This video gives you a walkthrough. If you haven’t heard, there’s a new type of simulation coming to the CPA exam starting in July 2016. It’s called a Document Review Simulation or DRS, and the objective is to give the CPA candidate something closer to what they’ll actually experience in practice as a newly licensed CPA. - See more at: http://www.superfastcpa.com/explanation-of-the-new-document-review-simulation-drs-on-the-cpa-exam/ While a DRS isn’t necessarily more difficult than other types of simulations that already exist, they have the potential to be very confusing. By including a “source document” with a lot of information, the candidate has to determine which parts of the document are relevant to the question being asked. But… this is something much closer to what you’ll do in real life as a newly licensed CPA, which is the whole point.
Views: 1683 SuperfastCPA
Non-business Bad Debts and U.S. vs Generes
http://www.accounting101.org/creditors-loss-treatment-business-and-non-business-bad-debts-u-s-vs-generes/ When things go downhill for a corporation, what happens is very different for a creditor versus an equity holder. If the creditor is a corporation, the bad debt that results is an ordinary deduction. But, if the creditor is something other than a corporation, then the bad debt can be treated two ways: as an ordinary deduction or as a short-term capital loss. What makes the difference is the type of loan it was. If it was a business bad debt, the investor gets ordinary loss treatment, but if it turns out to be non-business bad debt, then the loss will be given short-term capital loss treatment. Whether or not something is business bad debt or non-business bad debt can be hard to define sometimes. One of the ways to determine this is whether or not the corporation is in the business of loaning money... If it is, then it's reasonable to assume it will be treated as business bad debt. Another consideration is if a person is loaning money to their employer so that the business can continue and that they can continue to receive their salary. This is obviously rare, so in most cases an investor loaning money to a corporation that fails will be considered non-business bad debt, and will be treated as a short-term capital loss. This is less than ideal since only $3,000 a year can be deducted unless the investor has significant capital gains that the loss can be offset against. United States vs. Generes Creditor's Loss Treatment Case: In 1954, Generes and his son-in-law Kelly formed a construction company that was to engage in construction projects Generes owned 44% of the stock and was the president of the corporation and also received an annual salary of $12,000 Generes loaned money to the corporation once in awhile and acted as guarantor on several of these corporate loans In 1962 the company underbid two projects Generes ended up paying the bonding company over $162,000 because he has indemnified the bonding company Generes loaned the business another $158,000 to keep the business alive The corporation went into receivership and Generes was unable to his money On the 1962 tax return, Generes claimed a nonbusiness bad debt loss for the $158 loan and claimed a business bad debt loss for the $162k paid to indemnify the bonding company Generes testified that his sole motive in signing the indemnity agreement was to protect his salary of $12k/year The Issue: What was the real reason for entering into the indemnification agreement and paying the bonding company $162k? The Decision: The Supreme Court ruled that the dominate reason was what controls, and they deemed the dominant reason to be that Generes was looking to protect his equity, and not his salary. So the $162k was given short-term capital loss treatment.
Views: 704 SuperfastCPA

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