CCA Study Guide 2026

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📚 CCA Topics to Study (22)

✍️ Sample CCA Questions & Answers

1. Which assertion addresses whether transactions are recorded in the correct accounting period?
Cutoff

The cutoff assertion ensures that transactions and events are recorded in the proper accounting period, preventing premature or delayed revenue and expense recognition.

2. A project has a positive NPV. What does this indicate?
The project creates value by earning more than the required rate of return

A positive NPV means the present value of cash inflows exceeds the present value of outflows, indicating the project generates returns above the cost of capital.

3. Throughput accounting measures organizational performance primarily by focusing on:
The rate at which the system generates money through sales

Throughput accounting, based on the Theory of Constraints, prioritizes maximizing throughput (sales minus truly variable costs) over managing cost allocations.

4. Under the AICPA Code of Professional Conduct, which fundamental principle requires a CPA to be straightforward and honest in professional and business relationships?
Integrity

The integrity principle requires CPAs to be straightforward and honest, avoiding subordination of professional judgment to client or employer pressure.

5. Which of the following is considered a spontaneous source of financing?
Accounts payable arising from credit purchases

Accounts payable arise automatically (spontaneously) from normal business operations without requiring formal financing arrangements.

6. Why is the statement of cash flows important?
It shows cash inflows and outflows

It helps assess a company’s liquidity and financial flexibility by showing how cash is generated and used.

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