100+ Free FPAC Part I Practice Questions

Pass your FPAC Exam Part I — Financial Acumen exam on the first try — instant access, no signup required.

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51-63% Pass Rate

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Question 1

Score: 0/0

Master data management (MDM) primarily ensures:

That all spreadsheets use the same color palette

Daily backups of transactional files

Real-time replication of trading data

Consistent, agreed-upon definitions of key business entities (customers, products, GL accounts) across systems

to track

2026 Statistics

Key Facts: FPAC Part I Exam

140

Multiple-Choice Questions

AFP FPAC test specifications

3 hours

CBT Exam Time

AFP FPAC Part I overview

500

Scaled Passing Score

AFP FPAC exam scoring page

$1,025

AFP Member Early Fee (2026)

AFP FPAC deadlines page

51-63%

Part I Pass Rate Range

AFP-published recent windows

52-55%

Largest Domain (Concepts of Business & Finance)

FPAC Part I content outline

2x/year

2026 Testing Windows

Feb 1-Mar 31, Aug 1-Sep 30

FPAC Part I is a 3-hour CBT exam with 140 multiple-choice questions across three domains: Concepts of Business and Finance (52-55%), Business Partnering (28-34%), and Systems and Technology (15-20%). A scaled score of 500 is required to pass; recent windows have produced 51-63% pass rates. 2026 testing windows run February 1 - March 31 and August 1 - September 30. The combined Part I + Part II exam fee ranges from $1,025 (AFP member, early) to $1,520 (non-member, final). FP&A finance fundamentals — WACC, NPV/IRR, ratios, capital structure — anchor the largest section.

Sample FPAC Part I Practice Questions

Try these sample questions to test your FPAC Part I exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which equation defines weighted average cost of capital (WACC) for a firm financed by debt and equity?

A.WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)

B.WACC = Re + Rd

C.WACC = (Re + Rd) / 2

D.WACC = (E/V) * Re + (D/V) * Rd

Explanation: WACC weights the after-tax cost of debt and the cost of equity by their share of total capital (V = D + E). The after-tax adjustment (1 - Tc) reflects interest tax deductibility.

2A project has cash flows of -$100 at t=0, then +$60 at t=1 and +$60 at t=2. At a 10% discount rate, what is the NPV (rounded)?

A.$4.13

B.$20.00

C.-$4.13

D.$15.00

Explanation: NPV = -100 + 60/1.1 + 60/1.21 = -100 + 54.55 + 49.59 = $4.14. Positive NPV at the firm's hurdle rate indicates the project adds shareholder value.

3Which of the following best describes internal rate of return (IRR)?

A.The discount rate that sets NPV equal to zero

B.The firm's weighted average cost of capital

C.The compound annual growth rate of revenue

D.The accounting return on invested capital

Explanation: IRR is the discount rate at which the NPV of a project's cash flows equals zero. A project is generally acceptable if IRR exceeds the firm's required return (cost of capital).

4What is the primary limitation of the payback period as a capital budgeting metric?

A.It ignores cash flows after the payback point and the time value of money

B.It cannot be computed without using WACC

C.It always gives the same decision as NPV

D.It overstates the value of long-lived projects

Explanation: Simple payback measures only the time to recover invested cash and ignores cash flows beyond that point and the time value of money. Discounted payback fixes the time-value issue but still ignores later cash flows.

5Under the Capital Asset Pricing Model (CAPM), the cost of equity equals:

A.Risk-free rate + beta * (expected market return - risk-free rate)

B.Risk-free rate * beta

C.Dividend / current share price + growth

D.Earnings per share / price per share

Explanation: CAPM: Re = Rf + beta * (Rm - Rf). Equity holders require compensation for the time value of money (Rf) plus a premium proportional to the stock's systematic risk (beta) times the equity risk premium.

6Under ASC 606, when is revenue from a contract with a customer recognized?

A.When control of the promised good or service transfers to the customer

B.When cash is collected from the customer

C.When the contract is signed

D.When the invoice is issued

Explanation: ASC 606's core principle recognizes revenue to depict the transfer of promised goods or services in an amount that reflects the consideration the entity expects. Revenue is recognized when the customer obtains control of the goods or services.

7Which formula correctly states current ratio?

A.Current assets / current liabilities

B.(Current assets - inventory) / current liabilities

C.Cash / current liabilities

D.Total assets / total liabilities

Explanation: Current ratio = current assets / current liabilities and measures short-term liquidity. The quick ratio strips inventory and prepaids, and the cash ratio uses only cash and equivalents.

8DuPont decomposition typically expresses return on equity (ROE) as the product of:

A.Net profit margin x asset turnover x equity multiplier

B.Gross margin x current ratio x debt ratio

C.Operating margin + interest coverage + asset turnover

D.EBITDA margin x days sales outstanding x debt-to-equity

Explanation: Three-step DuPont: ROE = (Net income / Sales) x (Sales / Assets) x (Assets / Equity). It separates ROE into profitability, efficiency, and leverage drivers so an analyst can diagnose which lever changed.

9A bond with a 5% coupon paid annually, $1,000 par, and 3 years to maturity trades at par. What is its yield to maturity?

A.5%

B.Greater than 5%

C.Less than 5%

D.Cannot be determined without the discount rate

Explanation: When a bond trades at par, its yield to maturity equals its coupon rate. Discounting the 5% coupon plus principal at 5% gives present value equal to par.

10Which statement best distinguishes accrual accounting from cash-basis accounting?

A.Accrual recognizes revenue when earned and expenses when incurred, regardless of cash timing

B.Accrual recognizes revenue only when cash is received

C.Accrual and cash basis always produce the same net income

D.Cash basis is required under US GAAP for public companies

Explanation: Accrual accounting matches revenues to the period earned and expenses to the period incurred, providing a clearer view of operating performance. US GAAP and IFRS both require accrual accounting for general purpose financial statements.

About the FPAC Part I Exam

FPAC Part I Financial Acumen is the first of two FPAC exams from the Association for Financial Professionals (AFP). It is a 3-hour computer-based test of 140 multiple-choice questions covering Concepts of Business and Finance (52-55%), Business Partnering (28-34%), and Systems and Technology (15-20%). Candidates must demonstrate foundational FP&A knowledge: financial statements, ratios, time value of money, capital budgeting, cost of capital, working capital, ERP/EPM systems, data governance, stakeholder management, AFP ethics, and executive communication. A scaled score of 500 is required to pass.

Questions

140 scored questions

Time Limit

3 hours (CBT)

Passing Score

Scaled 500

Exam Fee

$1,025-$1,520 (covers both parts) (Association for Financial Professionals (AFP))

FPAC Part I Exam Content Outline

52-55%

Concepts of Business and Finance

Financial statements analysis, ratio analysis, time value of money, capital budgeting (NPV, IRR, payback, profitability index), cost of capital (WACC, CAPM), capital structure (MM, trade-off, pecking order), working capital management, accounting principles (GAAP/IFRS, ASC 606, ASC 842), and macro/micro economics fundamentals

28-34%

Business Partnering

Stakeholder management and mapping, influence without authority, AFP Standards of Ethical Conduct (integrity, objectivity, confidentiality, competence), governance, project management, change management (e.g., Kotter), and aligning finance with operating partners

15-20%

Systems and Technology

ERP and EPM systems, data warehouses (OLAP vs OLTP), master data management, financial data integration, spreadsheet design and controls, business intelligence and dashboards, robotic process automation, and data governance and lineage

How to Pass the FPAC Part I Exam

What You Need to Know

Passing score: Scaled 500
Exam length: 140 questions
Time limit: 3 hours (CBT)
Exam fee: $1,025-$1,520 (covers both parts)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

FPAC Part I Study Tips from Top Performers

1Master the core Part I formulas: NPV, IRR, payback, profitability index, WACC, CAPM, Hamada, and working capital ratios (DSO, DPO, DIO, CCC)

2Drill 3-statement model linkage so net income flows correctly into retained earnings and the indirect cash flow statement

3Memorize the ASC 606 five-step revenue recognition model and key US GAAP vs IFRS differences (LIFO, AFS, lease classifications)

4Build basic literacy in ERP, EPM, BI, and data governance concepts — Systems and Technology is small but easy to miss if ignored

5Internalize AFP's Standards of Ethical Conduct (integrity, objectivity, confidentiality, competence) and practice applying them to gray-area business partnering scenarios

Frequently Asked Questions

What is the format of FPAC Part I?

Part I Financial Acumen is a 3-hour computer-based test administered by Prometric. It contains 140 multiple-choice questions covering three domains: Concepts of Business and Finance (52-55%), Business Partnering (28-34%), and Systems and Technology (15-20%). Some items are spreadsheet-based but stay within the multiple-choice format.

What is the FPAC Part I pass rate?

Recent FPAC Part I testing windows have produced pass rates of approximately 51-63% based on AFP-published data. The exam is criterion-referenced, so a candidate is judged against the standard rather than against other test takers, and the pass rate can fluctuate window to window.

What topics are weighted the most on FPAC Part I?

Concepts of Business and Finance is the largest section at 52-55% of the exam. It tests financial statements, ratio analysis, time value of money, NPV, IRR, WACC, CAPM, capital structure, and working capital. Business Partnering is next at 28-34%, and Systems and Technology accounts for 15-20%.

How much does FPAC Part I cost in 2026?

The FPAC application fee covers both parts of the exam. For 2026, AFP members pay $1,025 (early) or $1,125 (final). Non-members pay $1,420 (early) or $1,520 (final), which includes one year of AFP membership. Corporate members pay $825 early or $925 final. The fee is not split per part.

When are the 2026 FPAC Part I testing windows?

AFP offers two testing windows each year. The 2026 windows are February 1 to March 31 and August 1 to September 30. Candidates can choose to sit Part I and Part II in the same window or in separate windows, as long as both parts are completed within five years of enrollment.

How long should I study for FPAC Part I?

Most candidates plan 60-100 hours of focused Part I study, spread across 3-5 months. The biggest time investment should go to Concepts of Business and Finance, given its 52-55% weighting. Build comfort with core formulas (NPV, IRR, WACC, CAPM, payback, profitability index) and AFP's Standards of Ethical Conduct.

Do I have to take Part I before Part II?

No, candidates can take Part I and Part II in any order. AFP recommends starting with Part I because Financial Acumen builds the foundation that Part II Financial Analysis and Business Support assumes. Both parts must be passed within five years of enrollment to earn the FPAC credential.