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CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting Practice Test 2025

CPA — Business Analysis & ReportingModel questions
99marks
240min
10questions

This is the official CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting question paper for 2025, as set in the Model questions examination. It carries 99 full marks and a time allowance of 240 minutes, across 10 questions. On Kekkei you can attempt this CPA — Business Analysis & Reporting past paper online with a timer, get instant AI feedback and step-by-step solutions, and track the topics where you lose marks — completely free. Whether you are revising for your CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting exam or solving previous years' question papers, this 2025 paper is a great way to practise under real exam conditions.

LevelCPA — Business Analysis & Reporting
SubjectCPA — Business Analysis & Reporting
Year2025 BS
Exam sessionModel questions
Full marks99
Time allowed240 minutes
Questions10, all with step-by-step solutions
A

Business Analysis & Reporting

Select the best answer.

10 questions·1 mark each
1Multiple choice1 mark

Under ASC 606 (Revenue from Contracts with Customers), revenue is recognized when:

  • a

    Cash is received from the customer

  • b

    Control of the promised goods or services is transferred to the customer

  • c

    The contract is signed by both parties

  • d

    The invoice is sent to the customer

Correct answer: b

Control of the promised goods or services is transferred to the customer

ASC 606 requires that revenue is recognized when (or as) an entity satisfies a performance obligation by transferring control of a promised good or service to the customer.

financial-reporting
2Multiple choice1 mark

A company produces 10,000 units. Fixed manufacturing overhead is 200,000andvariablemanufacturingoverheadis200,000 and variable manufacturing overhead is 5 per unit. Under absorption costing, the total manufacturing overhead applied per unit is:

  • a

    $5

  • b

    $20

  • c

    $25

  • d

    $200

Correct answer: c

$25

Under absorption costing, both fixed and variable manufacturing overhead are allocated to each unit. Fixed OH per unit = 200,000/10,000=200,000 / 10,000 = 20. Variable OH per unit = 5.Total=5. Total = 25 per unit.

cost-accounting
3Multiple choice1 mark

In the context of financial data analytics, Benford's Law is most useful for:

  • a

    Forecasting future revenue based on historical trends

  • b

    Detecting anomalies or potential fraud in naturally occurring numerical data

  • c

    Calculating depreciation expense on fixed assets

  • d

    Determining the present value of future cash flows

Correct answer: b

Detecting anomalies or potential fraud in naturally occurring numerical data

Benford's Law predicts the frequency distribution of leading digits in naturally occurring datasets. Deviations from expected frequencies can indicate data manipulation, errors, or fraud.

data-analytics
4Multiple choice1 mark

Which of the following is not a category of risk typically assessed under the Enterprise Risk Management (ERM) framework?

  • a

    Strategic risk

  • b

    Operational risk

  • c

    Aesthetic risk

  • d

    Compliance risk

Correct answer: c

Aesthetic risk

ERM frameworks (e.g., COSO ERM) categorize risks as strategic, operational, reporting, and compliance. 'Aesthetic risk' is not a recognized category.

risk-assessment
5Multiple choice1 mark

Which of the following controls is the best example of an IT general control (ITGC)?

  • a

    Three-way match of purchase order, receiving report, and invoice

  • b

    User access management and periodic access reviews

  • c

    Approval of customer credit limits by a manager

  • d

    Physical count of inventory at year-end

Correct answer: b

User access management and periodic access reviews

IT general controls include access security, change management, data backup, and computer operations. User access management is a core ITGC.

information-systems
6Multiple choice1 mark

Under ASC 842, a lessee must recognize a right-of-use asset and lease liability for:

  • a

    Only finance leases

  • b

    All leases with a term greater than 12 months

  • c

    Only operating leases

  • d

    Only leases with annual payments exceeding $50,000

Correct answer: b

All leases with a term greater than 12 months

ASC 842 requires lessees to recognize a right-of-use asset and corresponding lease liability on the balance sheet for all leases with terms greater than 12 months.

financial-reporting
7Multiple choice1 mark

A product requires 3 hours of direct labor at 20/hour.Thestandardquantityallowedforactualproductionof500unitsis1,500hours.Ifactualhoursworkedwere1,600at20/hour. The standard quantity allowed for actual production of 500 units is 1,500 hours. If actual hours worked were 1,600 at 19/hour, the labor efficiency variance is:

  • a

    $2,000 favorable

  • b

    $2,000 unfavorable

  • c

    $1,600 favorable

  • d

    $1,900 unfavorable

Correct answer: b

$2,000 unfavorable

Labor efficiency variance = (Standard Hours - Actual Hours) x Standard Rate = (1,500 - 1,600) x 20=−20 = -2,000 (unfavorable).

cost-accounting
8Multiple choice1 mark

A CPA uses regression analysis to estimate the relationship between sales volume and marketing spend. An R2R^2 value of 0.85 indicates that:

  • a

    85% of the variation in sales is explained by marketing spend

  • b

    There is an 85% probability that the model is correct

  • c

    Marketing spend will increase sales by 85%

  • d

    The correlation coefficient is 0.85

Correct answer: a

85% of the variation in sales is explained by marketing spend

R2R^2 (coefficient of determination) represents the proportion of variance in the dependent variable explained by the independent variable(s). An R2R^2 of 0.85 means 85% of sales variation is explained by marketing spend.

data-analytics
9Multiple choice1 mark

In a SWOT analysis, which of the following would be classified as an external threat?

  • a

    The company's strong brand recognition

  • b

    A shortage of skilled employees internally

  • c

    New regulatory requirements increasing compliance costs

  • d

    An emerging market opportunity in a new geography

Correct answer: c

New regulatory requirements increasing compliance costs

SWOT categorizes factors as internal (strengths/weaknesses) or external (opportunities/threats). New regulatory requirements are an external factor that negatively impacts the organization, making it a threat.

risk-assessment
10Multiple choice1 mark

Which type of system converts transaction data into information for monitoring performance and managing an organization?

  • a

    Transaction Processing System (TPS)

  • b

    Management Information System (MIS)

  • c

    Electronic Data Interchange (EDI)

  • d

    Local Area Network (LAN)

Correct answer: b

Management Information System (MIS)

A Management Information System (MIS) processes data from TPS and other sources to provide managers with reports and tools for decision-making, performance monitoring, and planning.

information-systems

Frequently asked questions

Where can I find the CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting question paper 2025?
The full CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting 2025 (Model questions) question paper is available free on Kekkei. You can read every question online and attempt the paper under timed exam conditions.
Does the CPA — Business Analysis & Reporting 2025 paper come with solutions?
Yes. Every question on this CPA — Business Analysis & Reporting past paper includes a step-by-step solution, plus instant AI feedback when you attempt it on Kekkei.
How many marks is the CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting 2025 paper?
The CPA — Business Analysis & Reporting CPA — Business Analysis & Reporting 2025 paper carries 99 full marks and is meant to be completed in 240 minutes, across 10 questions.
Is practising this CPA — Business Analysis & Reporting past paper free?
Yes — reading and attempting this CPA — Business Analysis & Reporting past paper on Kekkei is completely free.