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WELCOME. PLEASE START HERE!
1. Welcome to Farhat Lectures -
2. How to Use This Course & Resources
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3. Choosing the Right CPA Discipline
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4. CPA Exam Study Tips & Common Questions
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🚀Introduce Yourself1 Topic
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🚨🚨🚨2026 AICPA Released Questions1 Topic
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1A1 – FINANCIAL RISK MANAGEMENT📖Trade-offs Between Risk and Return2 Topics
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📖Systematic and Unsystematic Risk2 Topics1 Quiz
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📖Currency Exchange Rate Risk4 Topics
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📖Financial Risks2 Topics1 Quiz
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📖Time Value of Money: Simple vs. Compounding. APR vs. EAR3 Topics1 Quiz
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📖Present Value Of Single Amount4 Topics1 Quiz
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📖Present Value Of Annuity4 Topics
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📖Future Value Of Annuity5 Topics1 Quiz
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📖Present Value Of Bond Computation & Deferred Annuity6 Topics
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📖Target Costing2 Topics
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🚨🚨HOW TO SOLVE SIMULATIONS (TUTORIAL + VIDEO EXAMPLES)✅ BAR CPA Exam Simulation Tutorial + 2024 and 2025 AICPA Video Questions. Surgent10 Topics2 Quizzes
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1A2 – FINANCIAL STATEMENT ANALYSIS📖Financial Statement Analysis4 Topics
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📖Ratios8 Topics
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📖Market/Investor Ratios2 Topics1 Quiz
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📖Comprehensive Practice Financial Statement Analysis5 Topics
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📖Return on Equity (ROE)2 Topics
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📖The types of Data8 Topics3 Quizzes
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📖Primary and Foreign Key3 Topics2 Quizzes
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1A3 – MARGINAL ANALYSIS📖Relevant and Irrelevant Cost3 Topics2 Quizzes
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📖Add or Drop A Segment5 Topics1 Quiz
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📖Make or Buy Component Analysis5 Topics1 Quiz
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📖Accepting or Rejecting Special Order4 Topics1 Quiz
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📖Utilization of a Constrained Resource3 Topics1 Quiz
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📖Sell or Process Further Decisions5 Topics1 Quiz
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1A4 – VARIANCE ANALYSIS📖Direct Material and Labor Variance Analysis6 Topics2 Quizzes
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📖Variances Using Journal Entries6 Topics
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📖Variable & Fixed Overhead Variances4 Topics2 Quizzes
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1A5 – PERFORMANCE MANAGEMENT📖Benchmarking2 Topics
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📖The 4 Costs of Quality4 Topics1 Quiz
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📖Control & Pareto charts4 Topics
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📖Fishbone2 Topics
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📖Non-GAAP Measures2 Topics1 Quiz
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📖Performance Measurements2 Topics
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📖Balanced Scorecard5 Topics1 Quiz
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📖Residual Income5 Topics1 Quiz
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1A6 – COST ACCOUNTING📖Manufacturing Costs4 Topics2 Quizzes
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📖Product Cost Vs Period Cost4 Topics1 Quiz
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📖Cost Behavioor: Variable, Fixed & Mixed Cost4 Topics1 Quiz
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📖Job-Order Costing5 Topics1 Quiz
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📖Cost Flow In Job-Order Costing5 Topics
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📖Cost Of Goods Manufactured4 Topics
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📖Under-Applied & Over-Applied Overhead5 Topics1 Quiz
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📖Process Costing (Weighted Average)3 Topics
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📖Process Costing (FIFO)9 Topics2 Quizzes
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📖Activity-Based Costing11 Topics2 Quizzes
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📖Joint Product Costing & By-product2 Topics
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🎯Comprehensive Test Variance Analysis + Previously Released AICPA Questions2 Quizzes
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🎯Comprehensive Test ratios: AICPA Questions2 Quizzes
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🎯Comprehensive test: Responsibility Accounting + Previously Released AICPA Questions2 Quizzes
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🎯Comprehensive Test for: Cost Accounting Concepts + Previously released AICPA Questions2 Quizzes
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🎯Comprehensive ABC, Direct and Full (absorption) Costing : Complete After reviewing Farhat and Becker2 Quizzes
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1B1 – Budgeting, Forecasting, and Projection📖Capital Budgeting7 Topics1 Quiz
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📖What Is Capital Budgeting?2 Topics1 Quiz
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📖Net Present Value (NPV)5 Topics1 Quiz
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📖Depreciation Tax Shield2 Topics
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📖Internal Rate Of Return IRR6 Topics
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📖Payback & Discounted Payback Period5 Topics
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📖Accounting Rate Of Return ARR & Average Accounting Return AAR3 Topics
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📖Profitability Index6 Topics
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📖Buy versus Lease NPV2 Topics
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📖Economic Value Added (EVA)2 Topics
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1B2 – PROJECTION & FORECASTING TECHNIQUES📖Projection techniques2 Topics
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📖Simple regression2 Topics1 Quiz
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📖High Low Method4 Topics1 Quiz
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📖CVP Analysis2 Topics
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📖Contribution Margin Ratio2 Topics
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📖Cost Volume Profit Application6 Topics1 Quiz
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📖Absorption & Variable Costing9 Topics3 Quizzes
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📖Segmented Income Statement Traceable & Common Fixed Cost5 Topics1 Quiz
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📖Break-Even & Common Errors3 Topics1 Quiz
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📖Break-Even Point & Target Profit3 Topics1 Quiz
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📖Target & Cost Volume Profit Analysis3 Topics1 Quiz
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📖Margin Of Safety3 Topics1 Quiz
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📖Break-Even For Multi-Product4 Topics1 Quiz
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📖Cost Structure & Profit Stability2 Topics
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1B3 – BUDGETING📖What Is A Budget & Role Of Budgets2 Topics1 Quiz
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📖Budgetary Process3 Topics1 Quiz
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📖Types Of Budgets2 Topics1 Quiz
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📖Zero Based Budgeting & Rolling Budget2 Topics1 Quiz
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📖Activity Based Budgeting2 Topics1 Quiz
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📖Master Budget & Related Schedules10 Topics2 Quizzes
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📖Production Budget6 Topics1 Quiz
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📖Flexible Budget and Performance Analysis7 Topics2 Quizzes
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🎯Comprehensive Test: Capital Budgeting + AICPA Previously Released Questions2 Quizzes
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🎯AICPA Previously Released Questions: Projection and Forecasting Techniques3 Quizzes
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🎯AICPA Questions: Budgeting1 Quiz
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1B4 – CAPITAL STRUCTURE📖Capital Structure Components2 Topics1 Quiz
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📖Cost of Capital Components4 Topics1 Quiz
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📖Capital Structure and the Weighted Average Cost of Capital6 Topics1 Quiz
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📖Bond Yield and Risk Premium (BYRP)2 Topics1 Quiz
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📖Degree of Operating Leverage (DOL)4 Topics1 Quiz
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📖Growth, Profitability, and Financial Leverage4 Topics1 Quiz
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📖Return on Investment4 Topics1 Quiz
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1B5 – WORKING CAPITAL MANAGEMENT📖Receivables8 Topics3 Quizzes
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📖Economic Order4 Topics
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📖Just In Time Management2 Topics1 Quiz
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📖Risk Management2 Topics3 Quizzes
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📖Letter of credit2 Topics
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📖Short term versus Long term financing2 Topics
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🎯AICPA Questions: Capital Structure
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🎯Comprehensive Test: Working Capital Management + AICPA previously released Questions2 Quizzes
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📖Cost Flow Assumptions4 Topics
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1B6 – FINANCIAL VALUATION METHODS📖Asset Valuation6 Topics
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📖Basics of Stock Options.2 Topics
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📖Bonds Valuation2 Topics
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📖Stock Valuation6 Topics2 Quizzes
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📖Components of Required Rate of Return2 Topics1 Quiz
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📖Valuation using Accounting estimates2 Topics1 Quiz
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🎯Comprehensive Test Security Valuation + AICPA Questions2 Quizzes
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1B7 – ENTERPRISE RISK MANAGEMENT📖Governance and Culture ERM4 Topics
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📖Performance and Risk Severity4 Topics
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📖Information, Communication and Reporting (ERM)4 Topics2 Quizzes
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🎯Comprehensive Test: Enterprise Risk Management Framework ERM1 Quiz
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1B8 – Market Influences on Business📖Law of Demand & Supply4 Topics2 Quizzes
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📖Market Equilibrium2 Topics1 Quiz
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📖Elasticity8 Topics2 Quizzes
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📖Inflation4 Topics1 Quiz
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📖Industry Factors4 Topics2 Quizzes
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📖SWOT Analysis2 Topics1 Quiz
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1B9 – INTERNATIONAL BUSINESS OPERATIONS📖International Trade2 Topics1 Quiz
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📖International Operations6 Topics3 Quizzes
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1B10 – THE ECONOMIC EFFECT OF SIGNIFICANT TRANSACTIONS📖The Economic Effect of Significant Transactions4 Topics2 Quizzes
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🎯Comprehensive Test: Economics Questions + AICPA Previously Released Questions3 Quizzes
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🎯Comprehensive Test: Marginal (differential) + Analysis + AICPA previously Released Questions2 Quizzes
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🎯AICPA Questions: Absorption vs Contribution Costing1 Quiz
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2A – INTANGIBLES📖Intangible assets6 Topics2 Quizzes
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📖Impairment Of Intangibles3 Topics
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📖Goodwill Impairment7 Topics2 Quizzes
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📖Research and Development Cost6 Topics1 Quiz
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📖Start-Up & Initial Operating Losses4 Topics
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2B – Internally Developed Software📖Accounting for Computer Software Cost1 Topic1 Quiz
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🎯Test: Intangibles Assets and Software Cost3 Quizzes
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2C – REVENUE RECOGNITION ADVANCED TOPICS📖Percentage of Completion Method Losses4 Topics
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📖Contract Modification3 Topics
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📖Revenue Recognition9 Topics
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📖CPA Exam Simulation & Questions3 Topics2 Quizzes
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📖Cost Recovery Method for Revenue Recognition1 Topic2 Quizzes
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📖Accounting for Sales3 Topics1 Quiz
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🎯Test: Revenue recognition1 Quiz
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2D – STOCK COMPENSATION📖Stock Options6 Topics3 Quizzes
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📖Share-based payments2 Topics2 Quizzes
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🎯Test: stock compensation1 Quiz
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2E – BUSINESS COMBINATIONS & CONSOLIDATED FINANCIAL STATEMENTS📖Business Combination6 Topics2 Quizzes
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📖Consolidated Financial Statements2 Topics1 Quiz
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📖 Consolidations1 Topic1 Quiz
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📖Impairment of Assets (intangibles and Goodwill)1 Topic1 Quiz
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🎯Test: Business Combinations and Consolidations + AICPA Questions2 Quizzes
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2F – CONSOLIDATED FINANCIAL STATEMENTS📖Temporal Method6 Topics2 Quizzes
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📖Foreign Currency Translation5 Topics1 Quiz
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🎯AICPA Questions: Foreign Currency Translation1 Quiz
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2G – DERIVATIVES & HEDGE ACCOUNTING📖Hedge Accounting3 Topics
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📖Speculations3 Topics
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📖Fair Value Hedge4 Topics
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📖Cash Flow Hedge4 Topics
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📖Hedging Effectiveness & Documentation5 Topics2 Quizzes
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🎯Test: Derivatives and Hedging AICPA Questions1 Quiz
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2H – LEASES📖Accounting for Leases5 Topics2 Quizzes
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📖Leases7 Topics
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📖Residual Value for Leases3 Topics
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📖Lessor Accounting3 Topics1 Quiz
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📖Accounting for Leases Sales5 Topics5 Quizzes
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🎯Test: Leases AICPA Questions1 Quiz
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2I – SEGMENT REPORTING & PUBLIC COMPANY REPORTING TOPICS📖Segment Reporting3 Topics2 Quizzes
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📖Extensible Business Reporting Language (XBRL) & regulation6 Topics3 Quizzes
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🎯Comprehensive Test: Interim, SEC and Reportable Segments1 Quiz
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2J – FINANCIAL STATMENTS OF EMPLOYEE BENEFIT PLANS📖Pension Plan Financial Statements2 Topics1 Quiz
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🎯Test: Pension plans AICPA questions1 Quiz
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3A1 – FORM & CONTENT OF THE ANNUAL COMPREHENSIVE ANNUAL FINANCIAL REPORT📖Annual Comprehensive Financial Report2 Topics1 Quiz
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📖Component Units2 Topics1 Quiz
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3A2 – GOVERNMENT-WIDE FINANCIAL STATEMENTS📖Government wide Financial Statements2 Topics1 Quiz
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📖Capital Assets in Government-wide FS2 Topics1 Quiz
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📖Governmental Financial Statements4 Topics
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📖Reconciliation Government Wide Financial Statements Assets8 Topics2 Quizzes
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3A2 – Government Funds Financial Statements📖Governmental Funds3 Topics
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📖Elements of Governmental Financial Statements2 Topics
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📖Special Revenue Funds2 Topics1 Quiz
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📖Debt Service Funds2 Topics1 Quiz
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📖Categories of Fund Balance2 Topics1 Quiz
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📖Interfund Governmental Activities3 Topics
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📖Net Position in Governmental Accounting2 Topics1 Quiz
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📖Governmental Funds6 Topics1 Quiz
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3A3 – Proprietary Funds Financial Statements📖Accounting for Proprietary Funds7 Topics2 Quizzes
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📖Proprietary funds financial statements4 Topics
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📖Cash Flow statement for proprietary Funds3 Topics2 Quizzes
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3A4 – Fiduciary Funds Financial Statements📖Private Purpose/Investment Trust Funds3 Topics
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📖Pension Trust Funds2 Topics2 Quizzes
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3B1 – Capital Assets and Infrastructure Assets📖Capital Assets and Infrastructure Assets1 Topic
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3B2 – General and Proprietary Long-Term Liabilities📖Expenditures for Capital Asset, Interest, Principal and Capital/Operating Lease2 Topics
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📖Nonexchange Revenue Transactions2 Topics
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📖Expenditures vs. Expenses6 Topics
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📖Materials and Supplies3 Topics
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3B3 – BUDGETARY, ENCUMBRANCES & ACTIVITY ACCOUNTING📖Revenue Recognition10 Topics2 Quizzes
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📖Governmental Leases2 Topics
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📖Governmental Budgeting & Encumbrances6 Topics2 Quizzes
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🎯Test: Government Accounting and Reporting + AICPA Questions1 Quiz
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💡3A2 – Government Funds Financial Statements: Part 31 Topic
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Responses
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Hello Adam,
Please can you mention which question are you referring to ?
Farhat Lectures Support Team
Hello Adam,
You’re correct, and I appreciate your thoroughness in considering both approaches. While it’s true that the Future Value of $1 table can be used, in this context, the question specifically asks for the amount Lyan should invest now to achieve a future value of $5000 after four years.
Using the Future Value of $1 table would entail finding out how much $1 invested today would grow to in four years at 7% interest. This gives the future value of $1, but it doesn’t directly provide the present value of a future amount, which is what we need in this case.
The Present Value of $1 table directly provides the value of a future amount in present terms, which aligns with the question’s requirement of determining the amount Lyan needs to invest now.
So while both tables can theoretically yield the same result, the Present Value of $1 table is the more appropriate choice for this specific question, as it directly provides the present value of a future amount, aligning with the question’s requirements.
Farhat Lectures Support Team
https://farhatlectures.com/members/cyndee-jackson/
Based on the wording of the question, why is n=10 and not 20 (since the interest is paid semiannually)?
Hello Cyndee,
If the question had said ten years of semiannual payments, then you would use n = 20. Here it says ten semiannual payments, so it’s 10 total payments.
Based on the question’s wording, ten semiannual payments means 10 periods, not 20. That’s why n = 10 is appropriate.
The “semiannual” part is handled by adjusting the rate per period, not by doubling the number of payments. Since the discount rate given is 6% annually, the semiannual rate is 3% per period (6% ÷ 2).
Hope this makes sense!
#5 While this question seems to be easier, some people may struggle to understand it. The question does not state Melania’s age; as a result, this can confuse future users to answer this question. If Melania is 2 years old, then we have five periods instead of seven.
Hello Christopher,
You are correct! The wording is confusing because the question does not clearly tell us that the $500,000 gift will be received 7 years from today.
I’ve updated the question to remove the ambiguity.
Thank you for bringing this to our attention!