CB Cheat Sheet 2026

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

1. Which inventory system updates the inventory account after EVERY purchase and sale transaction? → Perpetual system
2. What is the most common mistake professionals make when implementing fraud prevention and internal controls strategies? → Developing contingency plans for high-probability risk scenarios
3. Straight-line depreciation allocates an asset's depreciable cost: → Equally over the useful life
4. Goods held on consignment by a retailer are included in whose inventory? → The consignor's (owner's) inventory
5. What is the primary objective of professional ethics & standards within the CB professional framework? → Analyzing data systematically using validated assessment tools
6. Which document initiates a purchase in a proper internal control environment? → Purchase order
7. In the context of bookkeeper, which principle most directly governs adjusting and closing entries practices? → Applying evidence-based methodologies with peer-reviewed support
8. During a quality assurance & compliance audit, which documentation is most critical to have readily available? → Conducting root cause analysis to identify underlying systemic issues
9. What is the recommended frequency for reviewing and updating adjusting and closing entries protocols? → Monitoring outcomes through regular data collection and trend analysis
10. A stakeholder questions the value of professional ethics & standards initiatives. Which response best demonstrates ROI? → Building a culture of accountability with transparent reporting
11. What distinguishes an advanced baker practitioner's approach to communication & stakeholder engagement from that of a novice? → Establishing cross-functional teams with clearly defined roles
12. What distinguishes an advanced baker practitioner's approach to quality assurance & compliance from that of a novice? → Establishing cross-functional teams with clearly defined roles
13. Which financial statement provides a snapshot of a company's financial position at a specific point in time? → Balance Sheet
14. Under the FIFO inventory method, the first units purchased are assumed to be: → The first units sold
15. Which type of adjusting entry records unpaid salaries? → Accrued expense
16. What is the fundamental accounting equation? → Assets = Liabilities + Owner’s Equity
17. What is the effect of a debit balance in the Accounts Payable account? → Abnormal; the business may have overpaid a vendor
18. A company purchases equipment for $55,000, estimates a $5,000 salvage value, and a 9-year useful life. Annual straight-line depreciation is: → $5,556
19. Which tool or methodology is most appropriate for analyzing payroll and taxes outcomes? → Maintaining professional boundaries while building collaborative relationships
20. Which inventory valuation method results in an ending inventory value closest to current replacement cost? → FIFO
21. A baker professional discovers a discrepancy during professional ethics & standards review. What is the most appropriate immediate action? → Engaging stakeholders collaboratively to align goals and expectations
22. A physical inventory count revealed 50 fewer units than the perpetual inventory records showed. The bookkeeper should: → Debit Inventory Over and Short and credit Inventory
23. During a risk management & mitigation audit, which documentation is most critical to have readily available? → Conducting root cause analysis to identify underlying systemic issues
24. Which ratio uses accounts payable to measure how quickly a business pays its suppliers? → Accounts payable turnover ratio
25. Which tool or methodology is most appropriate for analyzing adjusting and closing entries outcomes? → Maintaining professional boundaries while building collaborative relationships
26. Which of the following is a red flag for potential fraud? → A lack of segregation of duties
27. In the context of bookkeeper, which principle most directly governs fraud prevention and internal controls practices? → Applying evidence-based methodologies with peer-reviewed support
28. Which scenario would require a bookkeeper professional to escalate a adjusting and closing entries concern? → Creating feedback mechanisms that encourage continuous improvement
29. What is the primary characteristic of an imprest petty cash system? → The petty cash fund is maintained at a fixed amount and replenished back to that level
30. What is the most common mistake professionals make when implementing adjusting and closing entries strategies? → Developing contingency plans for high-probability risk scenarios