FA Study Guide 2026

Everything you need to pass the FA 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.

📚 FA Topics to Study (22)

Treasury and Cash Management · 7 cards Treasury and Cash Management · 7 cards Treasury and Cash Management · 7 cards Budgeting and Forecasting · 6 cards Budgeting and Forecasting · 6 cards Budgeting and Forecasting · 6 cards Capital Markets and Investment Analysis · 6 cards Capital Markets and Investment Analysis · 6 cards Capital Markets and Investment Analysis · 6 cards Financial Modeling and Valuation · 6 cards Financial Modeling and Valuation · 6 cards Financial Modeling and Valuation · 6 cards Financial Reporting and Analysis · 6 cards Financial Reporting and Analysis · 6 cards Financial Reporting and Analysis · 6 cards Risk Management and Assessment · 6 cards Risk Management and Assessment · 6 cards Risk Management and Assessment · 6 cards Compliance and Regulations · 5 cards Cost & Control Efficiency · 5 cards Financial Planning · 5 cards Strategic Decision Support · 5 cards

✍️ Sample FA Questions & Answers

1. What is the defining feature of a zero-balance account (ZBA)?

✓ A subsidiary account automatically swept to zero daily by transferring funds to or from a master account

A ZBA is automatically zeroed out each business day through transfers to or from a central master account, centralizing cash while allowing controlled disbursements.

2. Which of the following best describes a revolving credit facility?

✓ A flexible borrowing arrangement allowing repeated drawdowns up to a set credit limit

A revolving credit facility lets a company borrow, repay, and reborrow up to a predetermined limit, providing flexible short-term liquidity as needs change.

3. In zero-based budgeting, every budget cycle begins with:

✓ A zero base where all expenses must be re-justified

Zero-based budgeting requires managers to justify all expenditures from scratch each period, regardless of prior-year spending.

4. What is the primary use of a sensitivity table (data table) in financial modeling?

✓ To show how outputs change across a range of two key input assumptions simultaneously

A two-variable data table shows how a key output (like NPV or EPS) changes across a matrix of two different assumptions, helping analysts understand value drivers.

5. What is Value at Risk (VaR)?

✓ The estimated maximum loss over a given period at a specified confidence level

VaR quantifies the maximum expected loss over a time horizon at a given confidence level (e.g., 95% or 99%), used widely in financial risk measurement.

6. In a leveraged buyout, the exit multiple is used to calculate:

✓ The estimated enterprise value at the time the PE firm sells the investment

The exit multiple is applied to the company's projected EBITDA (or other metric) at the anticipated exit date to estimate the enterprise value the PE firm will receive upon selling.

🎯 Free FA Practice Tests

Treasury and Cash Management · 7 questions Treasury and Cash Management · 7 questions Treasury and Cash Management · 7 questions Risk Management and Assessment · 6 questions Capital Markets and Investment Analysis · 6 questions Financial Reporting and Analysis · 6 questions Budgeting and Forecasting · 6 questions Financial Reporting and Analysis · 6 questions Risk Management and Assessment · 6 questions Financial Modeling and Valuation · 6 questions

📖 FA Guides & Articles

Your FA Study Path

1. Learn with Flashcards → 2. Drill Practice Tests → 3. Take the Full Exam Simulation

🃏 Flashcards (131)