Becker CPA Exam Sample Questions
Becker student and Watt Sells award winner Kara Killingsworth found Becker’s MCQs to be instrumental in her exam success:
"The most helpful part of the Becker products was the immense amount of practice questions included. Once I would go through the practice questions and exams, I was able to gauge which areas I was weakest in and could go back to lectures or complete more questions in those areas. The questions really allowed me to put my knowledge to the test and feel prepared on exam day."
As multiple choice questions will be a big part of your CPA Exam, Becker has put together a few review questions and answers from each of the four exam sections to help you gauge your understanding of exam topics! See if you can figure them out:
Unit title: Accounting and review service engagements, interim reviews and ethics and professional responsibilities
Q: Which of the following services provides the least assurance regarding the fairness of financial statements?
Compilation. A compilation provides the least amount of assurance because it provides no assurance.
Unit title: Performing further procedures, forming conclusions and communications
Q: Fill in the blank! The date of the management representation letter should coincide with the date of the _____.
Auditor's report. Because the auditor is concerned with events occurring through the date of the audit report that may require adjustment to or disclosure in the financial statements, the management representation letter should be dated as of the date of the auditor's report.
Unit title: EPS, cash flows, and NFP accounting
Q: Fill in the blank! At what value should a nongovernmental not-for-profit organization record shares of stock when received? Fair value ______.
Fair value on the date of donation. Donated shares of stock are measured at their fair value on the date of donation.
Unit title: Investments, business combinations and goodwill
Q: Which of the following is not an example of a variable interest in an entity?
Accounts payable. Most liabilities, excluding short-term trade payables (accounts payable), represent variable interests.
Unit title: Financial reporting and disclosures
Q: Which of the following is the annual report that is filed with the U.S. SEC?
Form 10-K is filed annually with the SEC by U.S. registered companies.
Unit title: Operations management: planning techniques
Q: The term that best refers to past costs that have been incurred and are not relevant to any future decisions is:
Sunk costs. Sunk costs cannot be recovered and therefore are excluded from future decision making processes.
Unit title: Process management and information technology
Q: Review of the audit log is an example of which of the following types of security control?
Detective. Audit logs are detective security controls. They are generally chronological records that provide documentary evidence of the sequence of activities that can be used to detect errors or irregularities.
Unit title: Other entity taxation, professional responsibilities, and federal tax procedures (V3.7)
Q: True or False? The charitable contribution deduction on an estate's fiduciary income tax return is allowable only if the decedent's will specifically provides for the contribution.
True. Estates are allowed an unlimited charitable deduction for amounts that are paid to recognized charities out of gross income under the terms of the governing instrument during the tax year.
Unit title: Business Law
Q: Which of the following items is a capital asset?
An automobile for personal use. Options A and D are Section 1231 assets. Option C is an ordinary income asset.
Unit title: Corporate taxation
Q: Which of the following credits is a combination of several tax credits to provide uniform rules for the current and carryback-carryover years?
The general business credit combines several nonrefundable tax credits and provides rules for their absorption against the taxpayer's liability.