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AICPA CPA-Business Exam Questions
- Topic 1: Auditing and Attestation
- Topic 2: Business Environment and Concepts
- Topic 3: Financial Accounting and Reporting.
Free AICPA CPA-Business Exam Actual Questions
Note: Premium Questions for CPA-Business were last updated On Mar. 02, 2026 (see below)
Which of the following actions may be taken by a corporation's board of directors without stockholder approval?
Choice 'a' is correct. Purchasing substantially all the assets of another corporation does not require approval of the buyer's stockholders. Such a transaction would be relatively insignificant if a large corporation purchased substantially all the assets of a much smaller corporation.
Choice 'b' is incorrect. Selling substantially all of the corporation's assets is considered to be a fundamental change to the corporation's structure that requires approval by a majority of the shareholders following the board of directors' approval.
Choice 'c' is incorrect. Dissolving the corporation is considered to be a fundamental change to the corporation's structure that requires approval by a majority of the shareholders following the board of directors' approval.
Choice 'd' is incorrect. Amending the articles of incorporation is considered to be a fundamental change to the corporation's structure that requires approval by a majority of the shareholders following the board of directors' approval.
Which one of the following provides a spontaneous source of financing for a firm?
Choice 'a' is correct. Accounts payable provide a spontaneous source of financing for a firm.
Choice 'b' is incorrect. Accounts receivable take time to factor.
Choices 'c' and 'd' are incorrect.
Each of the following take time to issue:
C Debentures.
D Preferred stock.
Which of the following activities is considered a primary activity?
Choice 'a' is correct. Primary activities are those that are involved with the direct manufacture of products, the delivery of products through distribution channels, and the support of the product that exists after the sale is made (e.g., handling the raw materials, the manufacturing process, taking orders for the product, advertising the product, and servicing the product after it is sold).
Choices 'b', 'c', and 'd' are incorrect, as these are all considered support activities. Support activities are those activities that are performed by the support staff of an organization (e.g., purchasing of materials and supplies, development of the technology used, management of employees, accounting, finance, strategic planning, etc.).
In a competitive market an increase in the minimum wage will likely have the following effects:
Choice 'c' is correct. The general (or aggregate) demand for labor will remain unchanged; however, the quantity demanded will decrease.
Choice 'a' is incorrect, per Explanation: for choice 'c' above.
Choices 'b' and 'd' are incorrect. The general (or aggregate) supply of labor will remain unchanged; however, the quantity supplied will increase.
In 1992, Anchor, Chain, and Hook created ACH Associates, a general partnership. The partners orally agreed that they would work full time for the partnership and would distribute profits based on their capital contributions. Anchor contributed $5,000; Chain $10,000; and Hook $15,000.
For the year ended December 31, 1993, ACH Associates had profits of $60,000 that were distributed to the partners. During 1994, ACH Associates was operating at a loss. In September 1994, the partnership dissolved.
In October 1994, Hook contracted in writing with Ace Automobile Co. to purchase a car for the partnership. Hook had previously purchased cars from Ace Automobile Co. for use by ACH Associates partners. ACH Associates did not honor the contract with Ace Automobile Co. and Ace Automobile Co. sued the partnership and the individual partners.
Determine whether (A) or (B) is correct. Select the answer that corresponds to the correct statement.
Choice 'b' is correct. Since Ace brought suit against both the partnership and the individual partners, if judgment is rendered against the partnership, all partners could be held jointly and severally liable.
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