Now, if you look at a simulation, for example, look towards the back, you'll see here a simulation,
and the simulation has...the way it's set up, it has different kinds of sections because
it has these work tabs, and it has situation tabs. So what's happening with these is, you
do the first 30, you go to the next 30, you go to the next 30, then you go to the simulation.
With the simulation, when you click on this, that opens up a window, and when it opens
up the window in the stimulation and it's going to kind of look like this, where you
basically have...here in the top it's going to have...let's say, here's the clock, then
it's going to have a calculator, sheet, vertical split, horizontal split, unsplit, done. Then
here, it has situations, directions, authoritative pronouncements, those are your FASBs, resources,
and then it has other questions. And these other questions have pencil icons. That means
there's something for you to answer there, there's something that's getting graded. Now,
you've got this one, this one, this one, this one usually, this one over here is the research,
this one is written communication, and then these are just...let's say...it could be a
spreadsheet, it could be a bunch of C & E, do you capitalize your expenses, you bubble
it in. Now, as I said, the 2 simulations together are worth a total of 30 points, but of 20
points, 10 points here, 10 points here for each simulation. The other 10 points is for
a written communication. Each one has a written communication, but this is important. One
of them is worth 10 points, one of them is worth 0. It's thrown out. It's not 5 and 5,
it's 0 and 10 or 10 and 0. That's an important thing to know. Why? Because by the time I
get over here, this is multiple-choice section, testlet 1, testlet 2, testlet 3, simulation
1, simulation 2. By the time I get here, I've already taken 50, 50, 50...I've taken almost
3 hours of that exam, two-and-a-half-hours. By the time I get here, I'm not nervous anymore,
I'm fatigued, right? Who cares? I never wanted to be a CPA, I'm doing this for my parents,
I don't even care, I should have married rich. Don't say that to you...you're here, you're
stuck, keep working. Now, when you get to this, you're tired, fatigued, what do you
do? Run a smart race. My suggestion to you, and this is invaluable information, do this
first because it could be worth 10% of your score. That written communication first. Now,
what are they looking for? Basic beginning, middle and an end. Can you write in clear,
understandable English? They're looking for is it clear, concise, complete, use of standard
English. Did you write on topic? Now, when you look at the back, you'll see examples
of = written communication. Basically, one of them here, it says something, around, like,
page 32 or so in the back. It says, "Bayshore Industries board of directors consists mainly
of Bayshore Industries family members with no training in accounting. To them, financing
means borrowing money, investing means putting money into the bank or stock market." They've
asked you to write a memo to them explaining the terms investing and financing in a statement
of cash flows. Then it says, "Reminder," and the reminder is basically...and the reminder
you can see in any of the written communications..."Reminder. Your response is graded for both technical
content and writing skills. Content is evaluated for information that is helpful to the intended
reader and clearly relevant to the issue. Writing skills are evaluated for development,
organization, and the appropriate expression of ideas and correspondence. Use a standard
business memo or letter format with a clear beginning, middle and an end. Do not convey
information in the form of a table, bullet point list or other abbreviations." What does
that mean? It means your communication is machine graded. The machine doesn't know how
to read a chart, a graph, abbreviations or bullet points. Don't put it in there. All
it looks for is grammar and spelling. So, it's looking for...you know, when you get
a word document, you start typing, you get that red squiggly, it means you can't spell.
You get the green squiggly, it means your grammar ain't so good...that's what they're
looking for. They're also looking for the words. Did you write on topic? Not, is the
answer correct, but what does that question say? Investing and financing. That's all they're
asking. So, what words do you want include in your answer? Basically, you want to copy
and paste, but you can't do that. They disable that function. Why? Because they want you
to put it in your own words. So, what you're going to do is, look at that. It says board
directors...consists of mainly Bayshores families with no training, they're talking about cash
flows, borrowing money, investing money. Dear Bayshore Industries, right? To and from. Dear
Mr. Schmidt, Thank you very much for your question about a statement of cash flows.
The statement of cash flows has a variety of sections including operating, investing
and financing activities. The investing and financing activities specifically include
investing activities which is...and then you go into the details. Financing activities
is...go into the detail. It doesn't have to be right, but include those words. Financing
activities means borrowing money, right? If you borrow money, use those words. Investing
activity means putting money into the bank, or into the stock market. Yes, those are some
of the things it includes. If you have any other questions about operating, investing
and finance activities or statement of cash flows, peace...please feel free to contact
me at 5-5-5-5-5-5-5-5. Sincerely, Roger. Beginning, middle and an end, right? So, beginning, basically
tell them what you're going to tell them, tell it to them, tell them what you told them.
But all they're looking for is grammar and spelling, and did you use those words, on
topic? That could be 10 points. Do that first. So, I go, I do this first, then, I go back
to this. Now, when you go back to these other parts, it's going to have different things.
Maybe you'll click on here, and it's going to be a question where they want you to go
through and do a statement of cash flows. They're going to have operating, investing,
financing and then you have another sheet where you have to pick. You have all these
categories and all these dollar amounts. So, you have to go through and drag and drop.
Operating, investing, financing and then, over here, the dollar amounts. So, I'm going
to go through and work that out. You can also do in practice with the vertical and horizontal
split because here's this, and I want to have this here, so I can kind of look at it this
way, or you can have it side by side. That's an important thing to function...to practice.
That's why I gave you the software. Most importantly, go to this website to practice. The website
is www.cpa-exam.org. Org. Go to that website. That is the AICPA's website. That, you want
to go to a couple days before. That is exactly the functionality of the simulation. They
have one simulation for each part and five multiple choice questions for each part. You
can practice. That's where you play with it. I gave you software to practice with, but
this is exactly, exactly like it, and again, practice with the split, practice with the
calculator function, just...here...I'm here to teach you accounting. Now you go home and
learn it. Your jobs going to get familiar with how it's going to be tested to you. That's
why I suggest you spend a little bit of time in getting comfortable with that format the
way it's set up. The key is study hard. Don't get discouraged. Woo! Little Michael Jackson
walk. Come on down! I've been teaching almost 20 years after I left Deloitte and Touche.
I've done it for many, many years, helped thousands and thousands of people accomplish
their goal, which is to get through the exam.