Potential BEC SIM Topics from the AICPA

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    Lentilcounter
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    I have found that using the AICPA blueprints when studying for the simulations in any of the section of the CPA exam is helpful. I did this most recently for FAR and I’m glad I did. Topics tested at the analysis or evaluation level can be simulations on your actual exam. Topics tested at the remembering and understanding or application level can be MCQ. Below is a list of potential SIM topics for BEC.

    If you can align these objectives with SIMs in Ninja, Becker, Wiley, etc. and know how to do them well, you should be in good shape for SIMs on your actual test.

    Market influences on business

    Determine the impact of market influences on the overall economy as well as on the entity’s business strategy, operations and risk

    Determine the business reasons for, and explain the underlying economic substance of, significant transactions (business combinations, divestitures, etc.)

    Capital structure

    Compare and contrast the strategies for financing new business initiatives and operations within the context of an optimal capital structure, using statistical analysis where appropriate.

    Working capital/Fundamentals and key metrics of working capital management

    Detect significant fluctuations or variances in the working capital cycle using working capital ratio analysis.

    Working capital

    Compare inventory management processes, including pricing and valuation methods, to determine the effects on the working capital of a given entity.

    Compare accounts payable management techniques, including usage of of discounts, factors affecting discount policy, uses of electronic funds, transfer as payment methods and determination of an optimal vendor payment schedule in order to determine the effects on working capital of a given entity.

    Distinguish between corporate banking arrangements, including establishment of lines of credit, borrowing capacity and monitoring of compliance wth debt covenants in order to determine the effects of working capital of a given entity.

    Interpret the differences between the business risks and the opportunities in an entity’s credit management policies to determine the effects on the working capital of a given entity.

    Analyze the effects on working capital caused by financing using long-term debt and/or short-term debt.

    Financial valuation methods and concepts

    Compare investment alternatives using calculations of financial metrics (payback period, net present value, economic value added, cash flow analysis, internal rate of return etc.), financial modeling, forecasting, projection and analysis techniques.

    Compare options in a lease vs. buy decision scenario.


    Financial and non-financial measures of performance management

    Determine which financial and non-financial measures are appropriate to analyze specific aspects of an entity’s performance and risk profile (e.g., return on equity, return on assets, contribution margin, etc.)

    Variance analysis

    Determine the appropriate variance analysis method to measure the key cost drivers by analyzing business scenarios.

    Planning techniques/budgeting and analysis

    Reconcile results against a budget or prior periods and perform analysis of variances as needed.

    Analyze results of forecasts and projections using ratio analysis and explanations of correlations to, or variations from, key financial indices.

    Compare and contrast alternative approaches (such as system replacement, make vs. buy, and cost/benefit) proposed to address business challenges or opportunities for a given entity.

    BEC = 72 (6/08/16)
    FAR = ?
    REG = ?
    AUD = ?

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