Equity Method Excel Workbook

If you would like to use the Excel workbook that was used to create the Universal CPA lecture on the equity method, please click the link below to download the Excel workbook: Equity Method Lecture Example https://youtu.be/QE4flnmuSkw

How to calculate cash to accrual adjustment for deferred revenue?

Deferred revenue (liability) will be increased when the company collects cash from customers related to revenue that cannot be recognized (i.e., unearned as performance obligations have not been satisfied). Deferred revenue will be decreased when the company recognizes revenues that was previously categorized as unearned revenue. On the exam, you could be asked for the…

How to interpret the breakeven point in units?

The formula for calculating breakeven point in units is to take total fixed costs and divide by contribution margin per unit. Contribution margin per unit is calculated as revenue per unit minus variable costs per unit. The output of this formula will tell the company exactly how many units they need to sell to cover…

What is target costing?

Target costing is a system in which a company plans in advance the price points, product costs, and margins that it would like to use to achieve a new product. This concept will use the selling price of the product in order to determine the production of the cost that is required to enter the…

What is capital rationing?

Capital rationing is meant to illustrate that a company does not have unlimited capital, so they would perform analysis to determine what types of capital projects would provide the greatest benefit to the company. Every company will use different metrics to determine which projects to accept or reject based on their goals.  As it relates…

12 Tips to Pass the CPA Exam

CPA Review for Visual Learners Passing the CPA exam starts with using the Universal CPA Review course. If you’re studying for the CPA exam, then these 12 tips will help you pass the CPA exam. These tips can be used if you’re just starting or you have been studying for several months. Use these 12…

Gross Profit Method – Impact of overstating the gross profit %

A company will often use the gross profit method to estimate cost of goods sold and ending inventory during an interim period. A company would use this method if they do not have a perpetual inventory system and they only perform a physical inventory count at the end of a period. The formula for calculating…

3 Reasons to use Universal CPA as a supplement for the CPA exam

You’re struggling with the review course you spent thousands of dollars on and now you’re looking for additional resources to help you prepare for the CPA exam. Good news. You’re in the right spot! While Universal CPA can be used as a stand-alone course, it is also a great supplement to other review courses for…