Struggling through Stockholders’ Equity
Yesterday I finished bludgeoning my way through Stockholders’ Equity. The fact that it was one of the larger homework sections does not bode well, as I imagine this means I’ll have to know a lot of it for the FAR exam.
I didn’t quite get it when I learned it in school, and even after watching the Roger CPA Review videos, I didn’t absorb, say, the differences between par value methods and cost methods of accounting for treasury stock. What I DID absorb from Roger‘s videos are helpful memory triggers like “cost in-cost out (until retired)” and “par in-par out.”
So I really didn’t figure out how to do it until I did the homework problems, but now that I have a better idea of which accounts are involved, etc, the memory trigger helps me remember how to start.
I’ll be interested to see how this section goes when I start taking practice tests. One of my CPA review books says that many students get through school just half-knowing the material, but for the CPA exam, and especially for the simulation questions you really have to KNOW the material.
If I have time (and I plan to) this is definitely one of the sections I need to go back and review the most, because write now I feel like I’m just making educated guesses most of the time about half the accounts involved in my journal entries!
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It gets better I promise you.
You took the smart route and picked the WORST section first. This is the one that you are going to HATE. You’re going to hate Roger and you’re going to hate me and you’re never going to get TT BPO 75 or 90 out of your head for the rest of your life. But that’s fine because you NEED it in your head when you get to the exam.
If it makes you feel any better, we have it stuck in our heads too at the office.
hang in there, everything is easier after this.
Happy Friday!
(p.s. I’m up for Aud in San Jose at 5a tomorrow morning if it makes you feel any better? And I don’t even have to take this thing)