Gleim I.N Financial Accounting Exam Questions And Explanations 20Th Edition CPA Exam Tips: Time Management

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CPA Exam Tips: Time Management

The CPA exam consists of four different sections, each of which is divided into three smaller tests or “testlets,” with three of the four sections also having two simulation sections; each section has a different time limit. Like any test, the CPA exam is a balancing act between what you know and appropriate time management. Read on to learn some helpful time management tips for each section that will help you in your quest to pass the CPA exam.

Business Environment and Concepts (BEC)

Although the BEC section covers a variety of topics such as economics, information technology (IT), and business structure, it is the shortest section of the CPA exam with a time limit of 2.5 hours. However, don’t let its short length fool you; it can be very difficult. The BEC section is the only section without simulation questions; it consists of three testlets with 30 multiple choice questions each. To allow time for each question, you should spend 45 minutes per testlet and 1.5 minutes per question.

BEC Summary:

Multiple Choice Questions: 90 (1.5 minutes per question)

Simulations: 0

Time Limit: 2.5 hours

Regulation (REG)

The REG section has the least number of questions on the CPA exam, with 24 questions in three testlets for a total of 72 questions (18 fewer questions than the other three sections). That means each question is worth extra points. There are also two simulations, which are multi-part questions that require skills such as written communication, research, and calculations. Topics in the REG section include Federal Security regulations, individual taxation and corporate taxation. The time limit is three hours, which breaks down to 75 seconds per multiple choice question and 45 minutes per simulation.

REG Summary:

Multiple Choice Questions: 72 (75 seconds per question)

Simulations: 2 (45 minutes each)

Time Limit: 3 hours

Financial Accounting and Reporting (FAR)

The FAR section covers the most topics by far, and is widely thought of as the most difficult section of the CPA exam. It has three multiple choice testlets, with 30 questions each, plus two simulations. The topics of the FAR section include: accounting for public, private, governmental and non-profit organizations, pensions, bonds and intangible assets. The time limit is four hours, broken into 90 seconds per multiple-choice question, and 45 minutes per simulation.

FAR Summary:

Multiple Choice Questions: 90 (90 seconds per question)

Simulations: 2 (45 minutes each)

Time Limit: 4 hours

Audit and Assurance (AUD)

The AUD section includes topics such as planning and reviewing an engagement, internal controls and documentation. It has three multiple choice testlets, with 30 questions each, plus two simulations. The time limit is the longest of the four sections of 4.5 hours in length, which breaks down to two minutes per multiple choice question, and 45 minutes per simulation.

AUD Summary:

Multiple Choice Questions: 90 (2 minutes per question)

Simulations: 2 (45 minutes each)

Time Limit: 4.5 hours

When in Doubt, Guess

Maybe you’ll come across an incredibly difficult question, or maybe you’ll stumble upon a concept you’ve never heard of before. Whatever the obstacle holding you back, know that even test takers with the best time management skills can still run out of time. But unlike other standardized tests, you won’t be penalized for wrong answers, which means you won’t leave a question blank. If you run out of time, just guess – even if you guess you have a 25% chance of getting the answer right.

You Don’t Need a Perfect Score

If you find yourself having a panic attack before you enter the exam, just remember, you don’t need a perfect score, you need 75 points. Just focus on managing your time and get 75 points.

A CPA review course can offer more detailed information about CPA exam content, additional study tips and information on exam updates that will be implemented in 2011.

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