Most Tested Topics on CPA BEC Exam

BEC Content Specification Outline

Hey! Thanks for stopping by. Are you ready for an invigorating discussion on the BEC Exam? Great! Let’s get started. Understanding what the most tested topics on CPA BEC Exam is extremely important. Not only will you encounter these topics more often than other less tested topics, but you will also do exceptionally well on these topics by recognizing that these topics occur in a relatively higher frequency and preparing accordingly. The de facto guide of what are the most tested topics on CPA BEC Exam is the Content Specification Outline. Below you can find an abridged version AICPA’s Content Specification Outline for BEC. Grasp each area and the associated weight. Figure out where you may have some difficulty and be sure to read the BEC Exam Tips.

Content Specification Outline

Effective Date: January 1, 2016

Business Environment and Concepts (BEC)

Area

Weight

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%

 

Most Tested Topics on CPA BEC Exam

As you are probably well aware, taking the CPA Exam can be a grueling process. This can be attributable to the sheer amount of content that you are responsible for. To succeed on the CPA Exam and specifically BEC, you must bring me a shrubbery you should especially focus on the most tested topic, Financial Management. Financial Management includes groups such as Financial Modeling, Projections, and Analysis; Financial Decisions; Capital Management, including Working Capital; Financial Valuations (e.g. Fair Value); and Financial Transactions and Processing. Topics such as Capital Asset Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC) tend to be BEC favorites. An example of what a Financial Management multiple choice question may look like is below:

Calculate the required rate of return for a company using the Capital Asset Pricing Model (CAPM). Specifically, the company has a market return of 10 and a beta of 0.50. The risk-free rate is 3 percent.

  1. 1.5 percent
  2. 3.5 percent
  3. 5.0 percent
  4. 6.5 percent

The solution is as follows:

Calculate the required rate of return for a company using the Capital Asset Pricing Model (CAPM). Specifically, the company has a market return of 10 and a beta of 0.50. The risk-free rate is 3 percent.

  1. 1.5 percent
  2. 3.5 percent
  3. 5.0 percent
  4. 6.5 percent

For additional BEC multiple choice questions, check out Sample CPA BEC Practice Questions. Being able to efficiently and effectively identify formulas required in the question stem is key, especially for calculating multiple choice Financial Management questions. With your newfound knowledge, practice, practice, practice. As always, remember to breathe.

 

 

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