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Are you ready to pass the BEC section of the CPA Exam? Find out by testing yourself with free CPA Exam questions from Wiley CPAexcel. This download includes actual AICPA-released CPA Exam questions, as well as sample questions written by our team of experts. It also includes detailed answer explanations to help you understand your areas of weakness. These CPA Exam practice questions mimic the actual CPA Exam and feature the latest topics you’ll see on exam day.

The Business Environment and Concepts (BEC) section of the CPA Exam is designed to show that you’ve mastered the business core. It’s the only section that includes three written tasks in the last of its five testlets. In general, 50% of your score comes from MCQ testlets, 35% from TBS testlets, and 15% from the Written Communication testlet.

Here’s a sneak peak of what you’ll get from your free download of CPA Questions:

Question 1

According to COSO, which of the following components addresses the need to respond in an organized manner to significant changes resulting from international exposure, acquisitions, or executive transitions?

A. Control activities.
B. Risk assessment.
C. Monitoring activities.
D. Information and communication.

B is Correct

Risk assessment is the process of identifying, analyzing, and managing the risks involved in achieving the organization’s objectives. Changes related to international exposure, acquisitions, or executive transitions create risks, which must be assessed, prioritized, and responded to.


Question 2

Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary?

A. Protection of proprietary information.
B. Ability to coordinate activities of the subsidiary with other activities.
C. Ability to maintain quality control.
D. Minimizes capital investment required.

D is Correct

Minimizing capital investment required is not likely to be an advantage associated with a wholly owned foreign subsidiary. Acquiring or establishing a wholly owned foreign subsidiary typically is a costly and time consuming undertaking. Other forms of international business are likely to require less capital investment than a wholly owned foreign subsidiary.


Question 3

Which of the following is responsible for identifying problems and proposing initial solutions?

A. IT Steering Committee.
B. Lead systems analyst.
C. Application programmers.
D. End users.

D is Correct

This group has the primary responsibility of identifying problems and proposing initial solutions.


Question 4

A static budget contains which of the following amounts?

A. Actual costs for actual output.
B. Actual costs for budgeted output.
C. Budgeted costs for actual output.
D. Budgeted costs for budgeted output.

D is Correct

A static budget is a comprehensive financial plan produced at the beginning of the year for the entire enterprise and does not change (or flex) during the year. Thus, it uses budgeted costs based on budgeted output.


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