CPA BUSINESS EXAM

There are about four areas that are covered in CPA exam one of which one is Business Environment & Conceptsthat will be under discussion here.

CPA Business exam covers knowledge of general business environment and business concepts that candidates need to know in order to understand the underlying business reasons for accounting implications of business transactions, and the skills needed to apply that knowledge in performing financial statement audit and attestation engagements and other functions normally performed by CPAs that affect the public interest.

The total time duration for CPA exam is of fourteen hours of which CPA Business exam time duration is three hours. In the section of CPA Business exam questions are of multiple choice which covers approximately eighty five percent of the CPA exam whereas the remaining fifteen percent comprises of written communication questions.


CPA Business exam is to test the skills and knowledge of candidates related to general business environment and the business concepts that are required understand the reasons for, and accounting implications of business transactions.

CPA Business exam covers about six topic which are described below

Corporate Governance which covers sixteen to twenty percent of the exam includes Agency Theory, role of the executive board, compliance culture, the Combined Code and Emerging issues and developments in Corporate Governance

Economic Concepts & Analysis topic is about sixteen to twenty percent in the section of business in CPA exam it includes nature and scope of economics which is about economic theory and practice, its principles and concepts, Market structures and system etc. Macroeconomics theory and practice consist of macroeconomic environment, National Income Accounting, Government policies, objectives and instruments, unemployment, inflation, recession and growth.

Financial Management is about nineteen to twenty three percent in the exam it includes financial environment which include aims and objectives of profit and non-profit seeking organizations, Ethics and corporate governance issues in Managerial Finance, Interests and influence of key stakeholder groups. Sources of finance include Equity / debt financing, short, medium and long term finance, capital structures etc.  This topic further include investment appraisal, working capital management, business valuations, budgetary planning and control, management accounting in decision support

Information Systems and Communications cover fifteen to nineteen percent of the exam section. The Information System in business includes its support in the major business functions, relation between organizations, information systems, and business processes and main classifications of information systems in business. Functions of Information System include relationships between different information systems and their usage, support for business strategies. Communication includes its Principles, Verbal and non-verbal communication, Effective listening, Cross-cultural, Barriers, Public relations, Communication channels.

Strategic Planning topic covers ten to fourteen percent of the exam section which includes SWOT analysis, market research which includes clients, competitors and others, marketing goals which deal with market share customer awareness etc, financial planning, marketing planning, risk factors, assessment and review.

Operations Management covers twelve to sixteen percent of the business section of exam and includes cultural and ethical views, Developing Missions and Strategies, Achieving Competitive Advantage

Through Operations, Issues in Operations Strategy, Strategy Development and Implementation.

CPA Business exam comprises on three multiple-choice testlets and one written communication testlet with multiple-choice testlets accounting for 20% of the final score.

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