CPA Exam task-based simulations (TBS) are a key component of the CPA exam, particularly within the Core sections (Financial Accounting and Reporting [FAR], Regulation [REG], and Auditing and Attestation [AUD]) and Discipline sections. These simulations evaluate candidates on a higher cognitive level, requiring the application of knowledge to solve complex, real-world problems rather than simply recalling information.
As one candidate put it, “TBS felt evil and difficult. They were just challenging to figure out exactly what the examiners were looking for even though I could sense I knew the topic from studying.”
Given that TBS typically accounts for around 50% of your CPA exam score, knowing what to expect and how to prepare for them is critical to passing. Below, we’ll break down what TBS entails, the types you’ll encounter, and strategies for effective preparation.
Key Takeaways
- Real-Life Relevance: TBS replicate real-world accounting scenarios, requiring practical application.
- Emphasis on Multiple Skill Levels: TBS test various cognitive skills, including analysis, evaluation, and application.
- Diverse Simulation Types: From identifying key accounting terms to journal entries, simulations require an adaptable knowledge base.
- Scoring Weight: TBS generally account for 50% of your score (except for with ISC), underscoring their importance in your study plan.
What are CPA Exam Task-Based Simulations?
CPA Exam Task-Based Simulations (TBS) are designed to simulate real-world accounting scenarios, requiring candidates to apply their knowledge to practical tasks. With the 2024 CPA Evolution update, TBS now place a stronger emphasis on broad technical knowledge and assess a range of skill levels, from basic understanding to application, analysis, and evaluation. These simulations reflect the complexity and practical demands CPA professionals encounter daily.
Each core and discipline section of the CPA Exam includes TBS, which assess skills such as data analysis, interpreting standards, and completing journal entries. The exam has shifted away from testing memorization alone, instead focusing on a candidate’s ability to apply, analyze, and evaluate information within complex scenarios.
Different Types of CPA Simulations
Application-Based Questions: These simulations require candidates to perform tasks such as completing journal entries, calculations, and financial analyses. Each scenario tests the ability to make appropriate accounting decisions based on provided data and relevant guidelines, mimicking practical accounting tasks.
Matching Tasks: Candidates may be asked to match terms, classifications, or numbers with their correct counterparts, often within specific accounting or financial contexts. However, rather than simple matching, these questions require a nuanced understanding of relationships between terms, as they are embedded in real-world scenarios.
Fill-in-the-Blank Calculations: In certain simulations, candidates must input precise numerical answers, such as for pension liabilities or other complex calculations. Although labeled “fill-in-the-blank,” these tasks demand strong analytical skills, as candidates must work through complex calculations accurately.
Journal Entries: Some TBS require candidates to record transactions by filling in correct accounts, debits, and credits. These may appear as either open-ended fill-ins or matching-based entries, where candidates select the correct accounts to complete the journal entry accurately.
Research Component (Discontinued): Historically, the CPA Exam included research simulations requiring candidates to locate and cite specific standards within authoritative literature. This task type was removed in the 2024 CPA Evolution update, although applied research skills are still assessed indirectly through scenario-based questions.
Preparing for CPA Exam Task-Based Simulations
The TBS format is challenging by design and is intended to assess not just technical knowledge but a candidate’s ability to synthesize information and make sound accounting judgments. Preparation tips include:
- Invest in Quality Review Courses: The best CPA review courses offer ample TBS practice, covering various topics and question formats. Becker, Surgent, and other reputable courses are excellent resources for exploring simulation-specific content.
- Practice Broadly: Given the range of skills assessed, prepare to handle anything from straightforward calculations to nuanced accounting treatments. Use TBS examples in your study materials to familiarize yourself with the structure and expectations.
- Review Answer Explanations: Understanding why each answer is correct (or incorrect) can help you think like the examiners. Pay attention to explanations, as these will give insight into common traps and best practices for responding effectively.
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CPA Exam Journal Entry Simulations
The journal entry simulations come in two different formats: matching and fill-in-the-blank. Typically, a scenario is given that requires you to record a transaction. Then, a blank journal entry will be provided for you to fill in the accounts and amounts for each transaction.
The fill-in-the-blank journal entries are obviously harder than the matching ones because you have to calculate the answers and know what accounts to debit and credit without any help.
There are a ton of variations and layouts for each simulation, but they all fit into these four main simulation formats.
How to Practice CPA Exam Simulations
Practicing simulations is crucial to passing the exam. You need to practice reading the topics and questions, navigating each TBS, and answering the questions.
Second, to practice navigating the questions, your CPA exam review course is doing follow-up after you answer the questions. Most CPA review courses with simulations offer full explanations of the answers. Go back through and read the questions and rationales.
The reason simulations are so hard to prepare for is because they cover so many topics. You have to know everything. Use your review course to understand the types of topics that are being asked on the sims. If you understand the topics, you’ll be able to answer the questions on the real exam.
Conclusion
Now that you have a good understanding of CPA exam simulations, I’ve reviewed all of the top review courses and detailed how many practice sims each includes. Look at my reviews and see which one you should use to prepare for the task-based simulations on the CPA exam.
FAQ
No, the research component was discontinued as of 2024. However, each CPA exam section still includes task-based simulations (TBS), so it’s essential to be well-prepared! TBS are present throughout the exam and still account for roughly half of your total score.
Simulations now make up 50% (except for ISC) of your total score on the CPA exam. This includes all Core and Discipline sections.
There isn’t a separately published pass rate for the simulation sections, but we can assume that it mirrors the overall CPA exam pass rates for each section.
The best way to prepare for the CPA simulations is to practice them as much as possible. In order to do that, you will need a CPA review course that offers tons of different practice simulations, like Gleim or Becker.
