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. Which communication channel is most appropriate for sharing sensitive financial documents with a client? → Encrypted email or a secure client portal
3. What is the most common mistake professionals make when implementing fraud prevention and internal controls strategies? → Developing contingency plans for high-probability risk scenarios
4. Straight-line depreciation allocates an asset's depreciable cost: → Equally over the useful life
5. Goods held on consignment by a retailer are included in whose inventory? → The consignor's (owner's) inventory
6. Under the Fair Labor Standards Act (FLSA), which of the following records must employers retain for at least 3 years? → Payroll records including hours worked and wages paid
7. What does the AIPB Code of Ethics say about a Certified Bookkeeper who is convicted of a felony? → Their certification may be revoked as the conviction reflects on their integrity
8. When is it ethically permissible for a bookkeeper to disclose confidential client information to another party? → When required by law, court order, or with the client's explicit written consent
9. Professional tone in written communication with clients requires a bookkeeper to: → Write in complete sentences, avoid jargon, and proofread before sending
10. A bookkeeper records $1,540 as $1,450. This type of error is called a: → Transposition error
11. What is the primary objective of professional ethics & standards within the CB professional framework? → Analyzing data systematically using validated assessment tools
12. Which document initiates a purchase in a proper internal control environment? → Purchase order
13. In the context of bookkeeper, which principle most directly governs adjusting and closing entries practices? → Applying evidence-based methodologies with peer-reviewed support
14. Under GAAP, when should revenue from services be recognized using the accrual basis of accounting? → When the service is performed, regardless of when payment is received
15. Which IRS form must an employer file annually to report federal unemployment (FUTA) tax? → Form 940
16. During a quality assurance & compliance audit, which documentation is most critical to have readily available? → Conducting root cause analysis to identify underlying systemic issues
17. A bookkeeper working for a nonprofit organization is asked to transfer restricted grant funds to cover an operating shortfall. Doing so would: → Violate the restrictions on the grant funds and potentially constitute misappropriation
18. What is the recommended frequency for reviewing and updating adjusting and closing entries protocols? → Monitoring outcomes through regular data collection and trend analysis
19. A stakeholder questions the value of professional ethics & standards initiatives. Which response best demonstrates ROI? → Building a culture of accountability with transparent reporting
20. 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
21. 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
22. Which financial statement provides a snapshot of a company's financial position at a specific point in time? → Balance Sheet
23. Under the FIFO inventory method, the first units purchased are assumed to be: → The first units sold
24. Which type of adjusting entry records unpaid salaries? → Accrued expense
25. When a bookkeeper discovers a potential error in previously reported financials, the most ethical communication approach is to: → Notify the appropriate stakeholder promptly and explain the correction
26. What is the fundamental accounting equation? → Assets = Liabilities + Owner’s Equity
27. What is the effect of a debit balance in the Accounts Payable account? → Abnormal; the business may have overpaid a vendor
28. 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
29. Which tool or methodology is most appropriate for analyzing payroll and taxes outcomes? → Maintaining professional boundaries while building collaborative relationships
30. Which inventory valuation method results in an ending inventory value closest to current replacement cost? → FIFO