Chapter 2 – Financial Management
Before starting Chapter 2 of the BEC BOOST program, we would like to discuss a few items:
There are typically questions/issues that arise at this point of your studying that may be bothering you. The attached file addresses these questions: (1) Topic #1: I speak a lot to myself while studying. Is this okay? (2) Topic #2: Moving like a turtle!, (3) Topic #3: Are you studying in a good physical place?, and (4) Topic #4: Is talking with your friends who are also taking the CPA Exam helping or hurting your mind set? WE HOPE YOU FIND THE FOLLOWING FILE HELPFUL!
Issues that may be bothering you - BOOST Chapter 2
Chapter 2 of the BEC section of BOOST CPA Review discusses financial management. The videos in this chapter are long given the complexity of the information and the significant number of calculations. So, please don't rush through this material and take your time to understand it. Just take it step-by-step! Remember, an additional week of study (if needed) will be well worth it if the additional time is the difference between passing and failing the BEC section of the CPA exam!
Also, when you are close to completing Chapter 2 of BOOST, you should take a practice test (with only multiple choice) for the content noted on page one or two of the document with content comparisons of BOOST and Becker. This practice test will help you determine how much of the BOOST information you have retained and how well you have integrated the various topics. You should review your notes (which are a subsection of the BOOST outlines) periodically during the week to keep this information fresh in your mind.
Good luck as you begin your studies of Chapter 2! Some of the page numbers in the videos are not the same as the page numbers in the BOOST textbook. Please use the page numbers in the BOOST textbook.
Remember, please contact BOOST CPA Review by email if you have any questions as you work through Chapter 2.
AFTER WATCHING EACH VIDEO BELOW, please complete the appropriate multiple choice, simulations, and written communications tasks related to each of these videos. Please refer to the document with content comparisons of BOOST and Becker to determine which multiple choice, simulations, and written communication tasks to complete.
Here are the 10 videos for Chapter 2 of BOOST CPA Review. Good luck!
Please make the following updates to the textbook before starting Unit 2-1:
On page 37 of the BEC BOOST textbook, the formula is incorrect. The correct formula is: "[1 + (i/p)]p – 1"
Also, on page 40 of the BEC BOOST textbook, please make the following changes:
1. iv(2): change title from futures contract to forward contract.
2. iv(3);change title from forward contract to futures contract.
3. iv(3)(a); should read as follows; Similar to a forward contract except futures contracts are between a business and a commercial bank/clearinghouse.
4. iv(3)(b): should read as follows: forward contracts tend to be used for smaller transactions while futures contracts are typically used for larger transactions.
In Unit 2-2 of the textbook, please make the following changes:
Page 44 (item c(i)(2): change the word "right" to "obligation".
Page 44 (item d(i)(2): change the word "right" to "obligation".
Page 44: change footnote 3 as follows (with bold item being changed) "Forward contracts tend to be used for smaller transactions between two private parties. Futures contracts are contracts between a business and a commercial bank and are typically for larger transactions.
Page 48, item d(i)(1) should state "Net asset/export/inflows position: obtain a put option". On page 48, item d(i)(2) should state "Net liability/import/outflows position: obtain a call option". Basically, call option and put option must be switched on page 48 (items c and d) to be correct and consistent with what is stated in items c(i)((1) and d(i)(1) on page 44.