Latest PDF of BEC: CPA Business Environment and Concepts

CPA Business Environment and Concepts Practice Test

BEC Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

Business Environment and concept section is treated as one of the most challenging exams because of its extensive material and it deals with business and economic concepts. The CPA BEC section will help you to move one step further in business knowledge and help them apply the knowledge in real-world scenarios.

Business Environment and concepts covers:

Business environment in general, and its core concepts.
Foundational grounding in accounting and are exposed to underlying reasons for accounting implications
Financial management information technology, and business strategies in addition to accounting concepts.
Economic concepts, financial management, information systems and communications, strategic planning and operations management.
Testing to determine different business strategies with their knowledge in strategic planning and market risks.
Making financial decisions, forecasting trends in the market, and understanding internets implication in business.

Topic Percentage
Corporate Governance 16% – 20%
Economic Concepts and Analysis 16% – 20%
Financial Management 19% – 23%
Information Systems and Communications 15% – 19%
Strategic Planning 10% – 14%
Operations Management 12% – 16%

BEC1 Business Environment and Concepts (BEC)
BEC2 Section introduction
BEC6 Summary blueprint
BEC7 Area I — Corporate Governance
BEC9 Area II — Economic Concepts and Analysis
BEC11 Area III — Financial Management
BEC13 Area IV — Information Technology
BEC16 Area V — Operations Management

The Business Environment and Concepts (BEC) section of the Uniform CPA
Examination (the Exam) tests knowledge and skills that a newly licensed CPA
must demonstrate when performing:
• Audit, attest, accounting and review services
• Financial reporting
• Tax preparation
• Other professional responsibilities in their role as certified public accountants
The content areas tested under the BEC section of the Exam encompass five
diverse subject areas. These content areas are corporate governance, economic
concepts and analysis, financial management, information technology and
operations management. Reference materials relevant to the BEC section of the
Exam are included under References at the conclusion of this introduction.
Content organization and tasks
The BEC section blueprint is organized by content AREA, content GROUP and
content TOPIC. Each group or topic includes one or more representative TASKS
that a newly licensed CPA may be expected to complete when performing audit,
attest, accounting and review services, financial reporting, tax preparation or
other professional responsibilities.
The tasks in the blueprint are representative. They are not intended to be (nor
should they be viewed as) an all-inclusive list of tasks that may be tested in the
BEC section of the Exam. Additionally, it should be noted that the number of
tasks associated with a particular content group or topic is not indicative of
the extent such content group, topic or related skill level will be assessed
on the Exam. Similarly, examples provided within the task statements should
not be viewed as all-inclusive.

Area II of the BEC section blueprint covers several topics related to Economic
Concepts and Analysis, including the following:
• Knowledge of economic concepts and analysis that would demonstrate an
understanding of the impact of business cycles on an entitys industry or
business operation
• Determining market influences on the business environment, such as
globalization
• Determining the business reasons for, and the underlying economic substance
of, transactions and their accounting implications
• Understanding financial risks and the methods for mitigating the impact of
these risks
Area III of the BEC section blueprint covers several topics related to Financial
Management, including the following:
• Assessing the factors influencing a companys capital structure, such
as risk, leverage, cost of capital, growth rate, profitability, asset structure and
loan covenants
• Calculating metrics associated with the components of working capital, such
as current ratio, quick ratio, cash conversion cycle, turnover ratios
• Determining the impact of business decisions on working capital
• Understanding commonly used financial valuation and decision models and
applying that knowledge to assess assumptions, calculate the value
of assets and compare investment alternatives
Area IV of the BEC section blueprint covers several topics related to
Information Technology (IT), including the following:
• Understanding the role of IT and systems, including the use of data in
supporting business decisions.
• Identifying IT-related risks associated with an entitys information systems
and processes, such as processing integrity, protection of information and
system availability, including those risks introduced by the relationships with
third-parties.
• Identifying application and IT general control activities, whether manual,
IT dependent or automated, that are responsive to IT-related risks, such
as access and authorization controls, system implementation testing and
incident response plans.
Area V of the BEC section blueprint covers several topics related to Operations
Management, including the following:
• Understanding business operations and use of quality control initiatives and
performance measures to improve operations
• Application of cost accounting concepts and use of variance analysis
techniques
• Utilizing budgeting and forecasting techniques to monitor progress and
enhance accountability
The Exam focuses on testing higher order skills. Based on the nature of the task,
each representative task in the BEC section blueprint is assigned a skill level.
BEC section considerations related to the skill levels are discussed below.
• Remembering and Understanding is tested in all five areas of the BEC section.
Remembering and understanding tasks focus on the knowledge necessary
to demonstrate an understanding of the general business environment and
business concepts, such as those involving enterprise risk management.
• Application is also tested in all five areas of the BEC section. Application
tasks focus on general topics such as those found in the subjects of
economics and information technology, and the day-to-day financial
management tasks that newly licensed CPAs perform, such as those
involving calculations involving ratios, valuation and budgeting.
• Analysis skills, tested in Areas II, III and V involve tasks that require a
higher level of analysis and interpretation. These tasks, such as comparing
investment alternatives using calculations of financial metrics, financial
modeling, forecasting and projection, frequently require newly licensed CPAs
to gather evidence to support inferences.
The representative tasks combine both the applicable content knowledge
and the skills required in the context of the work that a newly licensed CPA
would reasonably be expected to perform. The BEC section does not test any
content at the Evaluation skill level as newly licensed CPAs are not expected to
demonstrate that level of skill in regards to the BEC content.
References — Business Environment and Concepts
• The Committee of Sponsoring Organizations of the Treadway Commission (COSO):
– Internal Control – Integrated Framework
– Enterprise Risk Management – Integrating with Strategy and Performance
– COSO-issued application material, thought papers and guides related to the above frameworks
• Sarbanes-Oxley Act of 2002:
– Title III, Corporate Responsibility
– Title IV, Enhanced Financial Disclosures
– Title VIII, Corporate and Criminal Fraud Accountability
– Title IX, White-Collar Crime Penalty Enhancements
– Title XI, Corporate Fraud Accountability
• Current business periodicals
• Current textbooks on:
– Accounting Information Systems
– Budgeting and Measurement
– Corporate Governance
– Economics
– Enterprise Risk Management
– Finance
– Management
– Management Information Systems
– Managerial Accounting
– Production Operations

100% Money Back Pass Guarantee

BEC PDF Sample Questions

BEC Sample Questions

BEC Dumps
BEC Braindumps
BEC Real Questions
BEC Practice Test
BEC Actual Questions
AICPA
BEC
CPA Business Environment and Concepts
https://killexams.com/pass4sure/exam-detail/BEC
QUESTION: 245
The imputed interest rate used in the residual income approach to performance
evaluation can best be described as the:
A. Historical weighted average cost of capital for the company.
B. Target return on investment set by the company's management.
C. Average return on investments for the company over the last several years.
D. Marginal after-tax cost of capital on new equity capital.
Answer: B
Explanation:
Choice "b" is correct. The imputed interest rate used in the residual income approach can
best be described as the target return on investment set by the company's management.
Choice "a" is incorrect, but it is a close second. The historical weighted average cost of
capital may be how management sets the target return on investment.
Choice "c" is incorrect. The average return on investments for past years may not be a
good indication of management's future intentions.
Choice "d" is incorrect. Marginal after-tax cost of capital on new equity may be how
management sets its targets, but it may not be, too.
QUESTION: 246
One approach to measuring divisional performance is return on investment. Return on
investment is expressed as operating income:
A. Divided by the current year's capital expenditures plus cost of capital.
B. Divided by fixed assets.
C. Divided by current assets.
D. Divided by total assets.
Answer: D
Explanation:
Choice "d" is correct. Return on investment is operating income divided by total assets.
Choice "a" is incorrect. Current year's capital expenditures plus cost of capital would be
a meaningless denominator.
Choice "b" is incorrect. This omits the current assets employed by the division. Choice
"c" is incorrect. This omits fixed assets.
QUESTION: 247
The following selected data pertain to the Darwin Division of Beagle Co. for 1994:
What was Darwin's 1994 residual income?
A. $0
B. $4,000
C. $10,000
D. $30,000
Answer: D
Explanation:
Choice "d" is correct. Residual income is income less the imputed interest rate times
average invested capital. Capital turnover is equal to sales / average invested capital.
Choice "a" is incorrect. Residual income is greater than zero. The imputed interest rate
times average invested capital needs to be compared with operating income.
Choice "b" is incorrect. Residual income is not simply the imputed interest rate times
operating income. The imputed interest rate times average invested capital needs to be
compared with operating income. Choice "c" is incorrect. Residual income is not
simply imputed interest rate times average invested capital. The operating income must
be considered.
QUESTION: 248
Select Co. had the following 1994 financial statement relationships: Asset turnover 5
Profit margin on sales 0.02 What was Select's 1994 percentage return on assets?
A. 0.1 percent.
B. 0.4 percent.
C. 2.5 percent.
D. 10.0 percent.
Answer: D
Explanation:
Choice "d" is correct. Return on assets equals income divided by average assets. This
formula can be further divided into the components of profit margin times asset turnover
(referred to as the Dupont formula):
Choices "a", "b", and "c" are incorrect, per the above calculation.
QUESTION: 249
The following information pertains to Quest Co.'s Gold Division for 1993:
Quest's return on investment was:
A. 10.00 percent.
B. 13.33 percent.
C. 27.50 percent.
D. 30.00 percent.
Answer: C
Explanation:
Choice "c" is correct. Return on investment equals net income divided by average
invested capital: Choices "a", "b", and "d" are incorrect, per the above calculation.
QUESTION: 250
Williams, Inc. is interested in measuring its overall cost of capital and has gathered the
following data. Under the terms described below, the company can sell unlimited
amounts of all instruments.
. Williams can raise cash by selling $1,000, 8 percent, 20-year bonds with annual
interest payments.
In selling the issue, an average premium of $30 per bond would be received, and the
firm must pay floatation costs of $30 per bond. The after-tax cost of funds is estimated
to be 4.8 percent.
. Williams can sell 8 percent preferred stock at par value, $105 per share. The cost of
issuing and selling the preferred stock is expected to be $5 per share.
. Williams' common stock is currently selling for $100 per share. The firm expects to
pay cash dividends of
$7 per share next year, and the dividends are expected to remain constant. The stock will
have to be underpriced by $3 per share, and floatation costs are expected to amount to
$5 per share.
. Williams expects to have available $100,000 of retained earnings in the coming year;
once these retained earnings are exhausted, the firm will use new common stock as the
form of common stock equity financing.
. Williams' preferred capital structure is: Long-term debt 30%
Preferred stock 20 Common stock 50
The cost of funds from retained earnings for Williams, Inc. is:
A. 7.0 percent.
B. 7.4 percent.
C. 8.1 percent.
D. 7.8 percent.
Answer: A
Explanation:
Choice "a" is correct. 7.0 percent cost of funds from retained earnings.
The cost of retained earnings is equal to the rate of return required by the firm's common
shareholders (or, in effect, the return "lost" by them when the firm chooses to fund with
retained earnings). While oftentimes this rate is somewhat subjective, we are given the
facts to exactly answer the question in this case. The stock is currently selling for
$100/share, and the dividend is given at $7/share.
$7 / $100 = 7%
Choices "b", "c", and "d" are incorrect, per the above Explanation:/calculation.

Killexams VCE Exam Simulator 3.0.9

Download Killexams-Exam-Simulator-3.0.9.rar

Killexams has introduced Online Test Engine (OTE) that supports iPhone, iPad, Android, Windows and Mac. BEC Online Testing system will helps you to study and practice using any device. Our OTE provide all features to help you memorize and practice test questions and answers while you are travelling or visiting somewhere. It is best to Practice BEC Exam Questions so that you can answer all the questions asked in test center. Our Test Engine uses Questions and Answers from Actual CPA Business Environment and Concepts exam.

Killexams Online Test Engine Test Screen

Killexams Online Test Engine Progress Chart

Killexams Online Test Engine Test History Graph

Killexams Online Test Engine Performance History

Killexams Online Test Engine Result Details

Online Test Engine maintains performance records, performance graphs, explanations and references (if provided). Automated test preparation makes much easy to cover complete pool of questions in fastest way possible. BEC Test Engine is updated on daily basis.

Newest 2021 Content of BEC Practice Questions questions bank

You will unleash the true power of killexams.com BEC Real Exam Questions when you take the real BEC exam. Everything we provided in your download section will appear on the actual BEC exam in real-time. Therefore, we suggest downloading 100% free PDF Questions to evaluate BEC sample questions, then registering and downloading the full version of BEC Exam Questions on your computer and going through the questions. Practice with VCE exam simulator, and that's all.

Latest 2024 Updated BEC Real Exam Questions

To pass the AICPA BEC exam, simply reading the coursebook isn't enough. At killexams.com, we aim to clear your ideas about the BEC course blueprint, syllabus, and goals, and help you learn about the tricky scenarios and questions that may be asked in the real BEC exam. You can start by downloading our free BEC PDF sample questions and reading through them. If you're satisfied, you can register to download the full version of BEC boot camp at a discounted price. Once you've downloaded it, you can also install the BEC VCE exam simulator on your computer, and practice BEC PDF Questions regularly with it. If you're on the go, you can download the BEC Latest Questions PDF on any mobile device or computer to read and memorize the real BEC questions during your free time. Keep practicing with the VCE test system until you're confident enough to take the real BEC test. Our BEC Latest Questions is available in two arrangements: BEC PDF file and BEC VCE exam simulator. You can read the PDF on any device and even print BEC PDF Questions to make your own book. Our pass rate is high at 98.9%, and the equivalence rate between our BEC study guide and the real test is 98%. With killexams.com, you can pass the AICPA BEC exam quickly and effectively in just one attempt.

Killexams Review | Reputation | Testimonials | Customer Feedback

I am pleased with the BEC Questions and Answers from killexams.com, which helped me during the exam. I am considering taking other AICPA certifications in the future.
Shahid nazir [2024-4-19]

When I failed my BEC exam, I searched the internet for solutions and found killexams.com. I quickly purchased the BEC coaching package containing questions, answers, and an exam simulator. I prepared for the exam using these resources and scored 98%. Thanks to the killexams.com team, I passed the exam with ease.
Martha nods [2024-5-8]

Based on my personal experience, I strongly recommend solving the question papers one after the other to crack the exam. killexams.com provides powerful test material, making it a useful and helpful website. Thanks to the killexams crew for their excellent service.
Martin Hoax [2024-5-22]

More BEC testimonials...

BEC Exam

User: Olya*****

After passing the BEC exam, I can confidently recommend killexams.com to anyone considering buying their materials. This is a valid and reliable study resource Thats perfect for people who can not afford full-time courses. The questions are actual, and the exam simulator accurately simulates the exam, making it easier to prepare and perform well.

User: Evie*****

I used the practice test from Killexams.com, and it made my BEC exam smoother. The quality of the material was impressive, and I was able to pass the exam.

User: Cecil*****

As my BEC test approached, I found myself lost in the books and struggling to comprehend the material. I had to prepare quickly, and giving up on my books, I decided to register on killexams.com, which turned out to be a wise decision. I cruised through my BEC exam and achieved decent marks. Thank you very much.

User: Naura*****

I found your materials to be extremely useful and was able to score 82% in the bec exam with just five days of preparation. The ability to download the materials in PDF format provided me with a convenient way to practice effectively, along with the online tests, which did not have a limited attempt restriction. The answers provided to each question were 100% accurate, which I appreciate greatly. Thank you so much for your assistance.

User: Ruby*****

I highly recommend this package to anyone planning to take the BEC exam. The certification exams are difficult, and it requires a lot of work to pass them. Killexams.com does most of the heavy lifting for you. The BEC exam questions I received from this website were very similar to those on the actual exam. Without these practice tests, I would have failed, and that is why many people do not pass the BEC exam on their first attempt.

BEC Exam

Question: I want to pass BEC exam, What should I do?
Answer: Killexams test prep greatly help you to pass your exam. These BEC exam questions are taken from actual exam sources, that's why these BEC exam questions are sufficient to read and pass the exam. Although you can use other sources also for improvement of knowledge like textbooks and other aid material these BEC questions are sufficient to pass the exam. After registering at the killexams.com website, download the full BEC exam version with a complete BEC question bank. Memorize all the questions and practice with the Exam simulator again and again. You will be ready for the actual BEC test. All the BEC questions and answers are up to date with the latest BEC syllabus and exam contents.

Question: I am your returing customer, what discount I will get?
Answer: We deal with our returning customers with special discounts. Contact support or sales via live chat or support email address and provide a reference of your previous purchase and you will get a special discount coupon for your next purchase.

Question: There are several websites providing BEC dumps, which I should select?
Answer: Killexams.com is the best place to get updated BEC questions questions. These BEC questions work in the actual test. You will pass your exam with these BEC test prep. If you give some time to study, you can prepare for an exam with much boost in your knowledge. We recommend spending as much time as you can to study and practice BEC practice test until you are sure that you can answer all the questions that will be asked in the actual BEC exam. For this, you should visit killexams.com and register to download the complete question bank of BEC exam test prep. These BEC exam questions are taken from actual exam sources, that's why these BEC exam questions are sufficient to read and pass the exam. Although you can use other sources also for improvement of knowledge like textbooks and other aid material these BEC questions are sufficient to pass the exam.

Question: BEC exam questions are changed, in that could I locate a new exam bank?
Answer: Killexams keep on checking BEC update and change/update the BEC exam question bank accordingly. You will receive an update notification to re-download the BEC exam files. You can then login and download the exam question bank files accordingly.

Question: Does killexams ensure my success in exam?
Answer: Of course, killexams ensures your success with up-to-date questions and answers and the best exam simulator for practice. If you memorize all the questions and answers provided by killexams, you will surely pass your exam.

References

Frequently Asked Questions about Killexams Practice Tests

I had an old account, Can I use the same account for new exams?
Yes, you can use the same account for new exams. But if you buy exams and got a new account to download, you can still ask support to shift your exams to your old account.

Where can I obtain BEC exam study help?
You can find BEC study help at killexams.com. Killexams provide the latest BEC exam practice questions in two file formats. PDF and VCE. PDF can be opened with any PDF reader that is compatible with your phone, iPad, or laptop. You can read PDF questions and answers via mobile, iPad, laptop, or other devices. You can also print PDF questions and answers to make your book read. VCE exam simulator is software that killexams provide to practice exams and take a test of all the questions. It is similar to your experience in the actual test. You can get PDF or both PDF and Exam Simulator. These BEC exam brainpractice questions will help you get high marks in the exam.

What features killexams exams simulator provide?
Killexams provide two sections, Practice Exam, and Real Test Practice. The practice exam is used for training. You can see the answer anytime during the test. All other features are available to you. In the end, you will see your score report. Real Test Practice is like the exam you experience in the test center. You can not see the answer and you have to answer all the questions in the specified time. Your performance is recorded and you can see a graph of your performance.

Is Killexams.com Legit?

Yes, Killexams is fully legit and even fully trusted. There are several options that makes killexams.com genuine and straight. It provides recent and hundred percent valid exam dumps that contain real exams questions and answers. Price is surprisingly low as compared to the vast majority of services online. The questions and answers are up to date on usual basis along with most recent brain dumps. Killexams account make and device delivery is incredibly fast. Submit downloading is certainly unlimited and intensely fast. Guidance is available via Livechat and Netmail. These are the features that makes killexams.com a robust website that give exam dumps with real exams questions.

Other Sources

Which is the best testprep site of 2024?

There are several Questions and Answers provider in the market claiming that they provide Real Exam Questions, Braindumps, Practice Tests, Study Guides, cheat sheet and many other names, but most of them are re-sellers that do not update their contents frequently. Killexams.com is best website of Year 2024 that understands the issue candidates face when they spend their time studying obsolete contents taken from free pdf download sites or reseller sites. That is why killexams update Exam Questions and Answers with the same frequency as they are updated in Real Test. Testprep provided by killexams.com are Reliable, Up-to-date and validated by Certified Professionals. They maintain Question Bank of valid Questions that is kept up-to-date by checking update on daily basis.

If you want to Pass your Exam Fast with improvement in your knowledge about latest course contents and topics, We recommend to Download PDF Exam Questions from killexams.com and get ready for actual exam. When you feel that you should register for Premium Version, Just choose visit killexams.com and register, you will receive your Username/Password in your Email within 5 to 10 minutes. All the future updates and changes in Questions and Answers will be provided in your Download Account. You can download Premium Exam questions files as many times as you want, There is no limit.

Killexams.com has provided VCE Practice Test Software to Practice your Exam by Taking Test Frequently. It asks the Real Exam Questions and Marks Your Progress. You can take test as many times as you want. There is no limit. It will make your test prep very fast and effective. When you start getting 100% Marks with complete Pool of Questions, you will be ready to take Actual Test. Go register for Test in Test Center and Enjoy your Success.

100% Money Back Pass Guarantee

Back to List

Social Profiles

CPA Business Environment and Concepts Practice Test

BEC Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

100% Money Back Pass Guarantee

BEC PDF Sample Questions

BEC Sample Questions

Killexams VCE Exam Simulator 3.0.9

Newest 2021 Content of BEC Practice Questions questions bank

Latest 2024 Updated BEC Real Exam Questions

Tags

Killexams Review | Reputation | Testimonials | Customer Feedback

BEC Exam

BEC Exam

References

Frequently Asked Questions about Killexams Practice Tests

Is Killexams.com Legit?

Other Sources

Which is the best testprep site of 2024?

Important Links for best testprep material

100% Money Back Pass Guarantee

Social Profiles