CPA exam

• Financial Accounting & Reporting (FAR)
• Exam time 4 hours
• 4 testlets
• 60% multiple choice
• 40% seven tasked-based simulations
• Auditing & Attestation (AUD)
• Exam time 4 hours
• 4 testlets
• 60% multiple choice
• 40% seven tasked-based simulations
• Regulation (REG)
• Exam time 3 hours
• 4 testlets
• 60% multiple choice
• 40% seven task-based simulations
• Business Environment & Concepts (BEC)
• Exam time 3 hours
• 4 testlets
• 85% multiple choice
• 15% three written communication tasks

CHECK US OUT

• http://www.maxwoodburycpa.com/
• linkedin.com: Max Woodbury
• facebook.com: Max Woodbury, CPA, LLC
• twitter.com: mwoodbury12
• email us at cpawoodbury@gmail.com or woodbury@netdirect.net
• call us at 765-318-1325 or 317-474-8015

Principles of Successful Investing

1. The only way you can invest is to save money.  The only way you can save money is to spend less than you earn.  The only way you can spend less than you earn is to live beneath your means.
2. Invest so that your money will grow faster than inflation.
3. Don't rely on your pension and Social Security benefits alone for a comfortable retirement income that will keep pace with inflation.
4. Your financial well-being is your own responsibility.  Don't rely too much on others to help you achieve it.

3 parts of the Statement of Cash Flows

CFFOA(Cash Flow From Operating Activities)
CFFIA(Cash Flow From Investing Activities)
CFFFA(Cash Flow From Financing Activities)

LLC

We have become an LLC(Limited Liability Company).  Max Woodbury CPA, LLC

Summary of GAAS

Generally Accepted Auditing Standards
General

1. Training and proficiency is a must
2. Independence in mental attitude
3. Due professional care

Field Work

1. Proper Planning & Supervision
2. Internal control & Entity understanding
3. Sufficient appropriate evidence

Reporting

1. Statements prepared in accordance with GAAP
2. Circumstances when GAAP is NOT followed
3. Adequacy of disclosures
4. Expression of opinion on financial statements

2011 Income Tax Rates

Marginal Tax Rates    Single              Married filing jointly       
       10%                 $0-$8,500               $0-$17,000               
       15%              $8,500-$34,500 $17,000-$69,000           
       25%            $34,500-$83,600 $69,000-$139,350         
       28%            $83,600-$174,400 $139,350-$212,300     
       33%            $174,400-$379,150 $212,300-$379,150   
       35%               $379,150+                 $379,150+                 

Head of Household        Married filing separately
$0-$12,150                       $0-$8,500
$12,150-$46,250              $8,500-$34,500
$46,250-$119,400           $34,500-$69,675
$119,400-$193,350         $69,675-$106,150
$193,350-$379,150        $106,150-$189,575
$379,150+                         $189,575+

Civil Procedure Stages

Pleading Stage
Pre-Trial Stage
Trial Stage
Appeal Stage

Income Statement

Net income shows and increase in owner's equity.  Net loss show's a decrease in owner's Equity.  NI does not show how much cash you earned.

Charitable Contributions Limitatitation for Corporations

For any tax year, a corporate taxpayer's contribution deduction is limited to 10% of taxable income.
Any contributions in excess of the 10% limitation may be carried forward to the five succeeding tax years.

Major Types of Individual Taxes

• Property Taxes (Personalty & Realty)
• Transaction Taxes (Manufacturer's, Wholesaler's, or Retailer's Level & Transfers of Property)
• Death Taxes (Estate & Inheritance)
• Gift Taxes
• Income Taxes
• Employment Taxes

2005 big revenue size CPA firms

1. Deloitte & Touche  $7,814,000
2. Ernst & Young   $6,330,600
3. PricewaterhouseCoopers   $6,167,000
4. KPMG   $4,715,000

Corporation AMT(alternative minimum tax)

A corporation is likely to pay an AMT for one or more of these reasons:

1. A high level of investment in assets such as equipment and structures.
2. Low taxable income due to a cyclical downturn, strong international competition, a low-margin industry, or other factors.
3. Investment at low real interest rates, which increases the company's deductions for depreciation relative to those for interest payments.

Exclusions from Gross Income

1. Donative items (Gifts or inheritances)
2. Personal and welfare items (Injury or sickness payments, public assisstance payments, or disaster relief payments)
3. Wage and salary supplements

•     Fringe benefits
• Accident and health benefits
• HSA
• Lodging and meals furnished for the employer
• Cafeteria plans
• Educational assistance payments
• Child or dependent care
• Military benefits
• combat pay
• housing and uniforms benefits
• Foreign earned income

4. Investors items (Interest on state and loval government obligations or improvements by tenant to landlords property)
5. Benefits for the elderly (Social Security)
6. Other benefits (Income from discharge of indebtedness, Recovery of a prior years deduction that yielded no tax benefit, Gain from sale of personal residence, etc..)

401(k)

$16,500 can be contributed to a 401(k) without being taxed as part of your earned income.  If you withdraw from your 401(k) before age 59 and 1/2 then an 10% additional tax will be attached to the withdrawal.  Unless an exception applies to your situation.

www.ycharts.com

I just subscribed to ycharts.com for help in my stock portfolio.  It's a great site!  Check it out

New Refrigerator

We put in a new refrigerator to put waters and snacks for our clients.  So come on over and we will give you a water bottle!