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…

What are deferred inflows and outflows in encumbrance accounting?

For deferred outflows of resources, its the consumption of resources that relates to future periods. This is similar to prepaid expense as we’re consuming net assets now and deferring the expense to a future period. For deferred inflows of resources, it’s the acquisition of net assets that is applicable to a future period. So for deferred…

When does a company perform a goodwill impairment test?

Under U.S. GAAP, a public company must test goodwill for impairment at least once annually. The company must use discretion to determine when the test is performed (i.e., what month?). The important thing to remember is that U.S. GAAP does indicate that the goodwill impairment test should be performed at the same time each year….

Best YouTube channel for CPA exam help?

If you typed this question into Google, then you are looking for additional resources on YouTube to help explain complex topics that are tested on the CPA exam. You are likely using a traditional review course that reads the book to you and has you underline/circle everything on the page. Is that how a college…

Exam Schedule and Content Summary

Exam Scheduler Template and Content Summary Exam Scheduler Template The Excel template available for download in the button below will provide a high-level CPA exam testing schedule for you.  The key inputs to the file will be the amount of study time you have per day (which aggregates up to a weekly basis) and the…

Difference between read and write access?

In the IT section of the CPA exam, candidates should be familiar with the difference between read and write access and what type of access is appropriate for a given scenario. Read access allows the user to only view or read the contents. Write access allows the user to view and modify the contents. So…