Business Environment and Concepts (BEC)

The Business Environment and Concepts (BEC) section of the Uniform CPA Examination (CPA) 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 BEC section is designed to have the following exam time and question types on the US CPA Exam:

Section	Section Time	Multiple-choice questions (MCQs)	Task-based simulations (TBSs)	Written Communication
BEC	4 hours	62	4	3

The scoring weight of multiple-choice questions (MCQs), task-based simulations (TBSs) and written communication for BEC section on the US CPA Exam is as follows:

	Score Weightage
Section	Multiple-choice questions (MCQs)	Task-based simulations (TBSs)	Written Communication
BEC	50%	35%	15%

The following table summarizes the content areas and the allocation of content tested in the BEC section of the Exam:

Content area	Topics	Allocation
Area I	Corporate Governance	17–27%
Area II	Economic Concepts and Analysis	17–27%
Area III	Financial Management	11–21%
Area IV	Information Technology	15-25%
Area V	Operations Management	15-25%

Here are some tips you must keep in mind while preparing for the BEC exam:

1. Spend more time practicing questions, than reading/ learning theory. The MCQs are generally more practical in nature, than theoretical.

2. Most people find out why an answer is not right. However, always identify the cause of your correct answer, as well. Sometimes you may get the answer right by chance. Ensure the logic applied by you is sound. Reading the answer explanation is highly important.

3. Task-Based Simulations (TBSs) should be attempted after you have a stronghold in the MCQ section, since simulations do not always conform to chapter boundaries and can test concepts from various disciplines. However, if you are good with the entire MCQs section, you will not find the TBSs as difficult, they will feel like long-form MCQs.

4. Written Communications are straightforward and will just need careful planning. Here are some tips to solve WCTs:

• The CPA exam will present 3 WCTs of which one is a pretest that does not carry any marks. It is not possible to know which amongst the 3 is a pretest question. Hence all 3 should be answered well
• The memo should be written in 3- 5 concise paragraphs and should appeal to the target audience. Start with an introductory para and end with a proper conclusion
• The examiners want to test your ability to write formal memos/ letters. Hence grammar, punctuations and correct word usage is very important
• Write down the keywords and the manner in which your memo will flow before you actually start writing
• Be clear whether you are required to give advice, recommendation, comparison or just information
• Never sign off as CPA (cause you are not already a CPA). You can use Future CPA or CPA student, or not signing off is also okay,  as it does not carry any marks
• Be sure to proofread in the end

Read more about the US CPA related articles in our blog section:  https://blogs.mileseducation.com/cpa/

Read more about FAR: https://blogs.mileseducation.com/cpa/financial-accounting-and-reporting-far/

Read more about REG: https://blogs.mileseducation.com/cpa/regulation-reg/

Read more about AUD: https://blogs.mileseducation.com/cpa/auditing-and-attestation-aud-format-and-tips/