AFC Study Guide 2026
Everything you need to pass the AFC exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 AFC Exam Format at a Glance
📚 AFC Topics to Study (21)
✍️ Sample AFC Questions & Answers
1. A bank service charge of $25 appears on the bank statement but has not been recorded in the company's books. How is this handled in the bank reconciliation?
Bank service charges reduce cash; since the company hasn't recorded them yet, they must be deducted from the book balance to reconcile.
2. Which term describes the systematic allocation of an intangible asset's cost over its useful life?
Amortization is the process of spreading the cost of an intangible asset (such as a patent or copyright) over its estimated useful life.
3. Which inventory system records cost of goods sold and updates inventory balances after each individual sale?
A perpetual inventory system continuously updates inventory and COGS records with every purchase and sale transaction.
4. What is informed consent in the context of Accounting Fundamentals Certification?
Informed consent means providing all relevant information so that parties can make knowledgeable decisions. It requires clear communication of risks, benefits, alternatives, and procedures.
5. Which approach is most effective for mastering accounts payable in Accounting Fundamentals Certification?
The most effective approach combines theoretical understanding with practical application, reinforced by regular review and assessment, enabling deeper comprehension and long-term retention.
6. A company discovers that ending inventory was overstated by $5,000. What is the effect on net income for that period?
Overstated ending inventory reduces COGS (since COGS = BI + Purchases − EI), which overstates gross profit and net income.