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AICPA BEC : CPA Business Environment and Concepts Exam

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Test Number : BEC
Test Name : CPA Business Environment and Concepts
Vendor Name : AICPA
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BEC test Format | BEC Course Contents | BEC Course Outline | BEC test Syllabus | BEC test 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 test 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 subject 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 subject is not indicative of the extent such content group, subject 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 subjects 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 subjects 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 subjects 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 subjects related to Operations Management, including the following:
• Understanding business operations and use of quality control initiatives and performance measures to Excellerate operations
• Application of cost accounting concepts and use of variance analysis techniques
• Utilizing budgeting and forecasting techniques to monitor progress and enhance accountability
The test 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 subjects 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

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Beacon enterprise spotlight: Acton fit body Boot Camp | BEC PDF Braindumps and Questions and Answers

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Acton fit physique Boot Camp turned into open just 5 short months when the pandemic forced it to close down in March.

It turned into a harsh introduction to new agencies possession for Maynard dad Sergey Meller and his spouse, Kendra.

Sergey Meller grew up in Russia and skated competitively in guys's freestyle except embarking on world tours with Disney on Ice. Kendra grew up in Lexington, was a champion synchronized skater who moreover being a college instructor, is the top teach of a synchronized skating team in her native land.

The active couple enjoys sharing their working towards skills with clients and assisting them transform into healthier types of themselves. Their methods consist of short bursts of intense interval practicing within a 30-minute session, along with personalized nutrition plans, all whereas keeping shoppers liable in their health journey.

issues had begun off so smartly for the companies considering the fact that launching in October 2019 -- membership turned into at 220 and one more 50 consumers had been within the center of trial memberships when the pandemic struck.

"We concept they had been doing surprising," pointed out Meller, who makes a promise to understand each customer through identify.

however as quickly because the Acton-Boxborough colleges closed on March 13, Meller voluntarily closed down as well as an alternative of watching for shutdowns madated with the aid of the state. at the beginning thinking it would be a brief condition, Meller become content with taking a wait-and-see method to the closure.

"at the start it gave the impression of two weeks however then it grew to become into 4 months" spoke of Meller.

instantly after closing his doorways, Meller became lower back in the gymnasium together with his coaches to list workout routines for customers. They launched an internet channel and began sending out hyperlinks to workout routines that may well be achieved at domestic. ultimately staff all started instructing reside Zoom classes as well. seeing that reopening this summer season, classes have persevered to be live streamed for those that nevertheless feel uncomfortable returning to the studio.

Meller currently purchased resistance bands and dumbbell units for his customers so that they would have working towards tools at their disposal whereas at domestic.

Over the closing 10 months, Meller observed he has lost about 175 clients. however, he turned into in a position to gaine about 70 or 80 new participants and he's confident they'll continue to be with the studio.

"We believe excited. I suppose the individuals becoming a member of now throughout the pandemic comprehend what they are signing up for. They made so many enhancements to the studio and i think once they come in, they consider protected," he talked about.

some of the improvements made to the studio include:

  • setting up an air purification equipment;
  • decreasing classification sizes from 32 americans per type to 10 per type; 
  • increasing the time between periods to allow for more energetic cleaning; 
  • setting up plastic partitions between each and every person to hold them a ways apart.
  • There is no shared equipment and masks are mandatory.

    Meller additionally put in a number of touchless sanitizing stations and every member has their personal sanitization substances within their partition, as well.

    "there may be several layers of coverage there for americans who are figuring out," he observed.

    Monday, Jan. eleven marked the delivery of a special six-week application on the studio entitled, New yr, New You challenge. Meller said about 30 new customers have registered for the application.

    "They recognize that fitness is terribly crucial at this time," he noted.

    Meller pointed to the proven fact that weight problems can cause serious fitness situations like heart ailment and diabetes that can put individuals at higher risk of COVID complications.

    "We retain individuals cooped up in their homes when truly people may do workout routines and feel more suitable and have more energy," he spoke of.

    Full-physique composition measurements are taken on the studio and Meller talked about he observed many people have put on weight throughout the pandemic.

    "we will inform these closing 10 months had been difficult on a lot of people," he mentioned.

    Acton healthy body Boot Camp is observed at 222 main St. in Acton. For extra assistance on membership alternatives, seek advice from,, or name 978-352-0348.

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