CPA Exam (BEC B6) – Multiple Choice Questions (MCQ) with Answer Key | 2025 Edition

BEC B6 CPA Exam – 2025 Updated Questions &
Answers | A+ Rated Guide

 What is the primary purpose of the COSO Framework?

 A) To ensure compliance with tax laws
 B) To provide guidelines for effective internal control
 C) To regulate financial reporting standards
 D) To eliminate financial risks
 Correct Answer: B

 Which of the following is a key component of Enterprise Risk Management (ERM)?

 A) Risk Avoidance
 B) Control Environment
 C) Information and Communication
 D) Monitoring Activities
 Correct Answer: C

 What does the Fraud Risk Principle focus on in internal control?

 A) Preventing all fraud occurrences
 B) Identifying and mitigating fraud risks
 C) Ensuring financial statements are error-free
 D) Eliminating fraudulent transactions
 Correct Answer: B

 Which financial metric is used to assess a company's ability to meet short-term
obligations?

 A) Debt-to-equity ratio
 B) Current ratio
 C) Return on assets
 D) Gross profit margin
 Correct Answer: B

 What is the primary goal of corporate governance?

 A) Maximizing shareholder wealth
 B) Ensuring compliance with tax regulations
 C) Reducing operational costs
 D) Managing employee performance
 Correct Answer: A

,  Which of the following is an example of a preventive control?

 A) Reconciliations
 B) Segregation of duties ✅
 C) Audit trails
 D) Monitoring activities

 What is the formula for calculating Return on Equity (ROE)?

 A) Net Income ÷ Total Assets
 B) Net Income ÷ Shareholder’s Equity ✅
 C) Net Income ÷ Total Liabilities
 D) Net Income ÷ Revenue

 Which of the following is a characteristic of a strong internal control system?

 A) Centralized decision-making
 B) Limited access to financial data
 C) Regular monitoring and evaluation ✅
 D) Minimal documentation

 What is the primary purpose of a balance sheet?

 A) To show a company's profitability
 B) To summarize cash flows
 C) To provide a snapshot of financial position ✅
 D) To detail operational performance

 Which of the following is an example of a detective control?

 A) Segregation of duties
 B) Reconciliations ✅
 C) Authorization of transactions
 D) Password protection

 What is the purpose of the matching principle in accounting?

 A) To match expenses with revenues ✅
 B) To match assets with liabilities
 C) To match cash inflows with outflows
 D) To match financial statements with tax returns

 Which of the following is a limitation of internal controls?

 A) They are costly to implement
 B) They cannot prevent all fraud ✅