CPA CFE Practice Test

CPA CFE Exam at a Glance

What changed for CPA CFE in 2026

• Oct 18, 2026: Other (update 2028-09-26) changed to The Fall 2028 CFE (September 26–28, 2028) is the last CFE offering. Registration runs April 10 to May 29, 2028. (previously The Fall 2028 CFE (September 26–28, 2028) is the last CFE offering, with registration April 10 to May 29, 2028.).^[4]
• Oct 18, 2026: Other (update 2026-06-02) changed to The June 2026 sitting was the last spring CPA Common Final Examination. The last chance to write the September CFE is in 2028. (previously The June 2026 sitting was the last spring (June) CPA Common Final Examination. From then on, the CFE is offered only in September, and the last September sitting is in 2028.).^[3]
• Oct 18, 2026: Other (update 2026-10-13) changed to CPAWSB says CPA PEP is winding down. The final Core 1 registration period opens October 13 and closes November 23. (previously CPAWSB says CPA PEP is winding down: the final Core 1 registration period opens October 13 and closes November 23.).^[2]
• Oct 18, 2026: Number of questions changed to Three-day case-based exam (previously Three-day case-based examination).^[1]
• Oct 13, 2026: CPAWSB says CPA PEP is winding down. The final Core 1 registration period opens October 13 and closes November 23.^[2]
• Jun 2, 2026: The June 2026 sitting was the last spring CPA Common Final Examination. The last chance to write the September CFE is in 2028.^[3]

CPA CFE Study Tips

• Create a structured study schedule at least 4-6 weeks before your CPA CFE exam date.
• Focus on understanding core concepts rather than memorising answers for the CPA Canada Common Final Examination.
• Use our free practice tests to identify weak areas and track your progress over time.
• Review the official CPA CFE exam syllabus to ensure complete topic coverage.
• Take timed practice sessions to build your exam pace and reduce test-day anxiety.

According to CPA Canada, with the provincial/regional CPA bodies, “The Common Final Examination (CFE) is a three-day examination requiring candidates to demonstrate depth and breadth of competency development in accordance with the CPA Competency Map.”^[1]

Worked examples: how to reason through CPA CFE questions

These are practice questions written for this site, not questions from the real exam. Each explanation shows why the right answer is right and why the others are wrong.

Example 1

Question: What is the payback period method of capital budgeting, and what is its main limitation?

1. It calculates NPV; its limitation is complexity
2. It measures the time to recover the initial investment; its main limitation is that it ignores the time value of money and cash flows after the payback period
3. It measures the accounting rate of return; it has no limitations
4. It calculates IRR; its limitation is multiple solutions

Answer: B. It measures the time to recover the initial investment; its main limitation is that it ignores the time value of money and cash flows after the payback period

Explanation:

Option B is right. Payback period measures how long it takes cash inflows to recover the initial investment. Its main weakness is that it ignores the time value of money and any cash flows after the payback point.

Option A is wrong because payback does not calculate NPV, and complexity is not its problem: it is popular because it is simple. Option C confuses payback with accounting rate of return, and no method is free of limitations. Option D describes IRR, which is a different technique whose known issue is multiple solutions.

Rule to remember: payback answers how fast you get your money back, not how much value the project creates. It uses an arbitrary cutoff instead of a value-based test, so pair it with NPV when a case asks for a recommendation.

Example 2

Question: Under the Income Tax Act, how is the principal residence exemption applied when a taxpayer disposes of a home?

1. All homes owned are automatically exempt from capital gains tax
2. The gain is exempt based on the formula: gain × (1 + years designated) / years owned, with only one property per family unit designatable per year
3. Only the first $500,000 of gain is exempt
4. The exemption only applies if the home was owned for more than 5 years

Answer: B. The gain is exempt based on the formula: gain × (1 + years designated) / years owned, with only one property per family unit designatable per year

Explanation:

Option B is right. The principal residence exemption uses a formula built on the years the property is designated plus the extra year, divided by the total years owned. It also limits designation so that a family unit cannot claim several homes for the same year.

Option A is wrong because homes are not automatically exempt; the taxpayer must designate and report the disposition. Option C is wrong because there is no fixed dollar cap such as $500,000 on the exempt gain. Option D is wrong because there is no minimum ownership period such as 5 years for the exemption to apply.

Rule to remember: the exemption is a proportion of the gain, driven by designated years against years owned, and the family unit shares the designation.

Example 3

Question: What does a SWOT analysis evaluate?

1. Only the external competitive environment
2. Internal strengths and weaknesses, and external opportunities and threats
3. Only the financial performance of a company
4. The technical specifications of a company's products

Answer: B. Internal strengths and weaknesses, and external opportunities and threats

Explanation:

Option B is right. A SWOT analysis looks inward at strengths and weaknesses and outward at opportunities and threats. The value is in lining up what the organization can do with what the environment allows.

Option A is wrong because the external competitive environment is only part of the picture, and it leaves out internal factors. Option C is wrong because financial performance is one input, not the whole tool. Option D is wrong because product specifications are too narrow and say nothing about external conditions.

Rule to remember: sort every point in a case into internal or external first, then into helpful or harmful. In a case response, tie each point to a recommendation instead of listing items.

How to use these practice tests

Start with the official material. Read the CPA Canada page on CFE case examples and note how the cases are framed, since the exam rewards applying knowledge to a business situation more than recalling definitions.

Then use our sets to find weak spots. Work through Financial Reporting, Management Accounting, Audit and Assurance, Finance, Taxation Canada and Strategy and Governance. Add the Ethics and Professional Responsibility questions, because ethics issues tend to sit inside cases. Keep a short log of every question you miss and the rule behind the right answer.

Next, move from questions to cases. Take a past case from the official site, read it under timed conditions that match the published length of the day, and write your response before checking anything. Compare what you covered with what the official guidance expects, and note which subject areas you skipped.

Finally, return to the sets for the areas your log shows most often. Revisit the Capstone 1 case close to your sitting, and confirm your date and rules with your provincial or regional CPA body.

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Sources & last verified

1. CPA Canada, with the provincial/regional CPA bodies — number of questions, eligibility (official source). “The Common Final Examination (CFE) is a three-day examination requiring candidates to demonstrate depth and breadth of competency development in accordance with the CPA Competency…” Verified Oct 18, 2026 · source checked Oct 18, 2026.
2. cpawsb.ca — time limit, other (official source). “Day 1 9:00 a.m. to 1:00 p.m. 4 Hours” Verified Oct 18, 2026 · source checked Oct 18, 2026.
3. cpaontario.ca — score release, other (official source). “Results release | December 4, 2026” Verified Oct 18, 2026.
4. cpawsb.ca — next exam date, other (official source). “Fall 2027 Apr 12 to May 31 Sep 7 Sep 8 to Sep 10 TBD TBD Upcoming” Verified Oct 28, 2026 · source checked Oct 28, 2026.

How we verify: editorial & fact-checking policy. Report an error: contact us.