CPB Study Guide 2026

FUTA (Federal Unemployment Tax Act) tax is a payroll tax paid solely by employers, not withheld from employee wages. This tax funds federal unemployment compensation programs and helps states pay unemployment benefits. It is distinct from FICA taxes (Social Security and Medicare), which are paid by both employers and employees.

Inherent risk is the level of risk present before any controls are implemented, while residual risk is the level that remains after controls and mitigations are applied.

Different stakeholders have different needs, interests, and levels of expertise, requiring adapted communication approaches for each group.

Double-entry bookkeeping is a fundamental accounting principle where every financial transaction affects at least two accounts. For every debit entry in one account, there must be a corresponding credit entry in another account, and the total debits must always equal the total credits. This system ensures accuracy, provides a complete record of financial activity, and forms the basis for preparing financial statements.

Effective professional communication requires clarity and accuracy, with the message tailored to the audience's level of understanding and needs.

Investment Products & Strategies directly contributes to professional effectiveness by providing essential knowledge and skills that improve the quality of work and outcomes across all career levels.