Schweser QBank asks several times to calculate cash flows using direct and indirect method. With each question on the actual exam averaging 90 seconds, how can they realistically expect somebody to go through that entire painstaking process and calculate a figure? Another example of how Schweser is way too quantitative at times…I’m going to focus on the general concept regarding the differences between using direct and indirect method.
It is possible dude, in less than 90 seconds. I have done the Schweser questions and I reckon they give too much information - but so long as you know what to do you use the only relevant information.
Some may be possible in less than 90 seconds, but there are plenty of QBank questions that take way more time even if you knew exactly what to do. I’m now coming across the same problem in LIFO-FIFO questions. Just saw one QBank problem that required no fewer than six calculations before you came up with the right answer…and that assumes you don’t make any mistakes along the way. Time and again I’ve read on this board that the actual exam is MUCH more conceptual than Schweser would have you believe. And at this point I’m not going to waste my limited time fumbling around with complex calculations when all they really want you to understand is the underlying concept.
CFA L1 was more conceptual than Schweser last yr (Dec 07) and the timing easier IMO although that doesn’t mean they wont change this year or throw in some calcs. I’d make sure you really know how to calculate it as they could easily give you a question on this that you think you know but in the exam if you can’t recall the exact defn of CFO (say) then you wont get the mark. Remember some questions could take more than 90 seconds for any given candidate, others might be a lot quicker (if you know the shortcuts).