CPA Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

Question 1

In database design, normalization primarily:

Slows queries always Reduces data redundancy and dependency anomalies Increases storage needs Eliminates backups

Question 2

For a core banking system, which IT control type is defined as: ensures complete and accurate processing: run-to-run totals, limit checks?

A processing control An input control A general control Manual controls only

Question 3

In a review of interim financial information for a public company (AU-C 930 / PCAOB), the accountant's report states:

Positive assurance on conformity with GAAP That nothing came to attention indicating material modification is needed for conformity with GAAP An audit opinion That no procedures were performed

Question 4

A contract requires all of the following EXCEPT:

Offer and acceptance Consideration Legality of purpose A written document always

Question 5

A decrease in accounts payable is, under the indirect method:

Subtracted from net income Added to net income A financing inflow Not adjusted

Question 6

A home office using the simplified method yields a deduction of:

Actual expenses Mortgage interest only $10,000 $5 per square foot, up to 300 square feet ($1,500 max)

Question 7

A firm needs its hurdle rate for project evaluation. How should WACC be computed?

Use last year's WACC forever Use book values for weights Compute WACC from market-value weights times after-tax cost of debt and cost of equity (CAPM or dividend model) Use the cost of debt alone

Question 8

The primary risk of commercial paper to the issuer is:

Dilution of equity SEC registration burden Fixed high interest Rollover risk: inability to refinance maturing paper in a credit crunch

Question 9

For a cloud migration, which IT control type is defined as: pervasive IT controls: access security, change management, operations, and SDLC controls?

Compensating controls General controls Application controls Manual controls only

Question 10

Which COSO internal-control component is defined as: capturing and communicating information needed to run controls?

Control activities Risk assessment Monitoring Information and communication

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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