CA Cheat Sheet 2026

The 30 highest-yield CA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which documentation is essential when working with information systems in CA? → Detailed technical specifications and as-built diagrams
2. When a product line is being considered for elimination, which of the following is LEAST relevant to the decision? → Historical allocated corporate overhead charged to the line
3. Which of the following best describes the concept of 'legal capital' for a corporation? → The minimum amount of contributed capital that cannot be distributed to shareholders
4. What is the auditor's primary objective when performing a 'cutoff' test on sales transactions? → To ensure that transactions are recorded in the correct accounting period
5. What is variance analysis used for? → Analyze performance gaps
6. Which approach best demonstrates mastery of cost accounting in CA practice? → Applying principles to novel situations with sound judgment
7. Which assertion is the auditor testing when verifying that all sales transactions occurring during the period have been recorded? → Completeness
8. A corporation issues stock at $10 par value but sells it for $15. How is the $5 excess recorded? → As additional paid-in capital
9. Which federal law prohibits employers from discriminating against employees based on race, color, religion, sex, or national origin? → Title VII of the Civil Rights Act of 1964
10. What is kaizen costing? → A continuous cost reduction approach applied during the production phase
11. The 'expectation gap' in auditing refers to: → The difference between what users expect from an audit and what auditors actually do
12. What is the formula for Return on Investment (ROI) in divisional performance measurement? → Operating income ÷ Invested assets
13. What is the PRIMARY ethical obligation of a certified Certified Accountant professional regarding confidential information? → Protect it from unauthorized disclosure at all times
14. Which budgeting method starts from zero each period? → Zero-based budgeting
15. An auditor encounters a situation where the client restricts access to a significant class of transactions. What is the most likely audit report outcome? → Qualified opinion or disclaimer of opinion due to scope limitation
16. In CA practice, what is the primary purpose of strategic planning? → To align resources with goals and anticipate challenges
17. Which PCAOB standard governs the auditor's responsibilities regarding related party transactions? → AS 2410
18. How does the CA body of knowledge relate to daily professional practice? → It provides the foundational framework that guides decision-making and standard practices
19. A corporation with a fiscal year ending March 31 must file its federal income tax return by which date (without extension)? → July 15
20. What is the proper course of action when an CA professional witnesses unethical behavior by a colleague? → Report through established channels
21. In CA practice, what is the primary purpose of strategic planning? → To align resources with goals and anticipate challenges
22. Which of the following is NOT a characteristic of an efficient capital market (EMH - semi-strong form)? → Insider trading cannot generate abnormal returns
23. Under ASC 805, which of the following is NOT included in the consideration transferred in a business combination? → Transaction costs such as legal, advisory, and due diligence fees
24. Which of the following scenarios would most likely trigger a firm to issue equity rather than debt? → The firm's debt ratio is already near its industry maximum
25. When an auditor issues a disclaimer of opinion, it means the auditor: → Was unable to obtain sufficient appropriate audit evidence to form an opinion
26. A company's return on investment (ROI) can be improved by: → Increasing net operating income while reducing invested assets
27. Which access control model assigns permissions based on an individual's role within the organization? → Role-Based Access Control (RBAC)
28. Which professional attribute is most valued in cost accounting within the CA field? → Accountability and commitment to standards
29. Which costing method assigns all manufacturing costs (fixed and variable) to products? → Absorption costing
30. Which of the following is the primary goal of financial management for a publicly traded corporation? → Maximizing the market value of shareholders' wealth