CPA Study Guide 2026
Everything you need to pass the CPA 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.
📋 CPA Exam Format at a Glance
📚 CPA Topics to Study (75)
✍️ Sample CPA Questions & Answers
1. What is the purpose of data analysis in CPA practice?
Data analysis examines, cleans, and models data to discover useful information and support decision-making.
2. A company has a price-to-earnings ratio of 8x while its industry peers average 15x. A value investor would most likely:
Value investors seek stocks trading below intrinsic value; a P/E significantly below peers may indicate an undervalued opportunity.
3. When performing risk assessment for a client with significant estimates, an auditor should:
The auditor must evaluate whether management's assumptions and methods for developing estimates are reasonable and consistent with applicable accounting standards.
4. A CPA's CAS client asks for a cash flow forecast for the next 12 months to present to a bank for a loan. Which document should the CPA prepare?
A forecast uses management's best estimate assumptions about expected conditions and is appropriate when third parties like lenders will rely on it.
5. Under the at-risk rules, a partner's deductible loss from a partnership is limited to:
IRC Section 465 limits loss deductions to amounts actually at risk—cash invested plus recourse liabilities for which the partner is personally liable.
6. What is accrual accounting?
Accrual accounting is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash actually changes hands. This provides a more accurate picture of a company's financial performance over a period, as it matches revenues with the expenses that generated them. It contrasts with cash basis accounting, where transactions are recorded only when cash is received or paid.