About BEC CPA Exam
[Updated for 2023 - 2024]

Your FREE Guide to BEC
From study tips to 2024 pathways, get the guidance you need to take on BEC.

The Business Environment and Concepts (BEC) section of the CPA Exam covers all business concepts as well as the importance of a CPA's professional obligations and responsibilities in the greater context of the business environment. Like all the other sections of the CPA Exam, BEC is administered by the American Institute of Certified Public Accountants (AICPA).

BEC is the only section that requires candidates to prepare and submit three Written Communication responses (WC). Many CPA candidates consider BEC to be the easiest section of the CPA Exam. However, BEC pass rates have historically been only slightly higher than those for other sections, and the exam still requires a serious study effort.

How is the BEC CPA Exam Scored and Graded?

The BEC Exam is scored on a scale of 0 to 99, and candidates need a score of 75 to pass. These aren't percentages, and they shouldn't be treated as such. Scaled scores on exam questions are determined using algorithms that take into account whether the question was successfully answered as well as the difficulty level of each question.

The higher the value of a question, the more difficult it is. As a result, a candidate who answers 10 difficult (higher value) questions correctly will receive a higher score than a candidate who answers 10 easy (lower value) questions correctly.

Answering 75% of the questions on the exam correctly does not translate into a score of 75. There are many factors that go into your CPA Exam score, which can be accessed at How the CPA Exam is Scored.

The BEC section score is a weighted average of the results from multiple-choice questions (50 percent of the exam), task-based simulations (35 percent of the exam), and written communication (15 percent of the exam).

BEC Exam Testlet selection
BEC Exam Testlet selection

For the purpose of scoring the BEC exam, consider the MCQ and the TBS/WC as two different exams. The grades from each are added together (as shown by the 'weight' percentages above) to give you an overall score. Although it would appear that properly answering 75% of the MCQs and scoring 75 or above on the TBS/WC would result in a passing mark, this is not the case due to question pretesting and the varied point values provided to each question. Learn more about CPA Exam scoring and pass rates on the AICPA website.

Steps in computing BEC exam score

BEC CPA Exam Pass Rates

BEC is considered by many candidates to be the least intensive section of the CPA Exam. It is also the CPA Exam section with the highest cumulative passing percentage. BEC has an excellent pass rate in 2022 as well, nearly 60%.One explanation for the higher BEC pass rates could be that candidates typically appear for this section of the exam last, restricting the pool of candidates to those who have completed the previous three parts successfully.

However, BEC pass rates have generally been slightly higher than other portions, and the test still necessitates a significant amount of study time. While many people pass it, many also fail it. So don’t underestimate the BEC section and not give it enough of your time and effort. Here are the Top 5 Most Difficult Topics for BEC exam candidates. Below are the historic pass rates for the BEC exam.

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The AICPA publishes the average CPA Exam pass rates, broken down by section, every quarter. The overall pass rates vary slightly by region and quarter, but it tends to settle around 45-55 percent. View the pass rates for each section of the CPA Exam from prior years in CPA Exam Pass Rates

How to Study for the BEC Section of CPA Exam?

The BEC exam is often dismissed because it has a reputation for being the easiest portion of the CPA Exam. Don’t fall into this trap. While the overall breadth of content is less than other CPA Exam sections, BEC will still be challenging! Here are some tips on how to best study for this exam.

BEC CPA Exam Study Tips

If you're ready to begin preparing for the BEC CPA Exam right now, we recommend using some of the study techniques listed below.

  • The BEC exam is an endurance test. Commit to spending the time necessary to properly comprehend the content.
  • Make a study regimen or a game plan and stick to it with the aid of our Study Planners.
  • By saying "no" when you need to study, you may safeguard your study time.
  • Consider blocking Internet access, turning off alerts, and notifying family, friends, and coworkers that you will be absolutely unreachable during your specified study periods.
  • Solicit help from relatives and friends.
  • Get plenty of rest, eat healthy, and exercise often.
  • Turn a stroll, workout, or time waiting in line into a study session by using mobile devices.
  • Study more effectively by avoiding poor study approaches, such as working through endless practice questions and not actually taking the time to learn.
  • Practice the mnemonics not just to memorize them, but also to comprehend them—recite them while describing what each part means and how it fits into the broader picture in your own words.
  • Keep your sights set on the finish line and remember why you're on this adventure.

Tips for the Written Communication Section of BEC

The Written Communication portion of BEC not only tests your proficiency in articulating a problem and solution through well-thought-out content, but also your technical use of standard English and professional documentation creation. So here are a few pointers to keep in mind as you construct your entire written communication strategy:

  • Spelling, grammar, and Standard English should all be followed.
  • Use whole sentences and write clearly and simply.
  • Include an introduction, body, and concluding paragraph.
  • Bullet points, acronyms, charts, and graphs should all be avoided.
  • Stay on topic. It is critical that your written response is relevant, on-topic, and addresses the query.
  • Incorporate keywords into your response. For instance, you may include terms like "changing accounting principle," "change in estimate," and "retrospective." It depends on the nature of the query. In any case, be sure to include some of the question's primary components in your response.

What should I focus on in the WC part of the BEC CPA Exam?

The BEC Exam is an endurance test. Commit to spending the time necessary to properly comprehend the content. The written communication portion of the BEC exam is graded for both technical content and writing skills. In order to do well on written communication questions, it is important to know what the graders are looking for in a well-written response:

  1. Clear
  2. Concise
  3. On topic
  4. Proper grammar
  5. Complete sentences
  6. Organization
  7. Supporting details
  8. Proper formatting
  9. Introductions and conclusions
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FAQs

Many CPA candidates consider BEC to be the easiest section of the CPA Exam. However, BEC pass rates have generally only been slightly higher than other portions, and the test still necessitates a significant amount of study time. While many people pass it, many also fail it. So don’t underestimate the BEC section and not give it enough of your time and effort. Here is what guest blogger, Margo Pacific, considers to be The Most Difficult Topic on BEC.
The sequence in which a candidate takes the four parts of the CPA Exam varies based on a variety of criteria, but we usually advise taking BEC last. Keep in mind, you must complete all exam parts within an 18-month window.
We estimate that 51-68 hours of study time is necessary to pass BEC, although each student is different and has different time constraints.
The CPA Exam’s BEC portion covers all business concepts as well as the importance of a CPA’s professional obligations and responsibilities in the greater context of the business environment. Corporate governance, economic principles and analysis, financial management, information systems and communications, strategic planning, and operations management are all tested in this exam part.

Yes, you can receive partial credit on WCs and TBSs. A candidate’s BEC score consists of 50% MCQs, 35% TBSs, and 15% WC. Of the 62 MCQs, 50 are operational, meaning they count toward the exam score, while 12 are pretested and do not count toward the exam score. Of the four TBSs, three are operational and one is pretested. Of the three WCs, two are operational and one is pretested.

For the purpose of scoring the BEC exam, consider the MCQ and the TBS/WC as two different exams. The grades from each are added together to give you an overall score. Although it would appear that properly answering 75% of the MCQs and scoring 75 or above on the TBS/WC would result in a passing mark, this is not the case due to question pretesting and the varied point values provided to each question.

According to the AICPA, changes in federal legislation are testable on the CPA Exam in the calendar quarter beginning six (6) months after their effective date, and uniform acts in the calendar quarter beginning one (1) year after their adoption by a simple majority of the jurisdictions.
In Fall 2023, there will be a deadline for BEC (both original and re-examination) applications. All state boards of accountancy must set a cutoff application date for CPA candidates (tentatively expected to be November 15, 2023) and final day to sit for the exam (tentatively expected to be December 15, 2023). Once the deadlines are finalized, NASBA will announce them on the website. Most likely, candidates will not be able to take BEC several times in November and December 2023. We advise you to plan ahead as many candidates are expected to test late in 2023, and testing appointments will be in high demand.
The BEC CPA Exam will not be offered after December 15, 2023. BEC will be unavailable after that date, as well as in 2024 and beyond.

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