FAC Cheat Sheet 2026

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

1. What is the primary purpose of tax compliance? → To ensure adherence to tax laws and avoid penalties
2. Which ethical framework holds that certain rules or duties must be followed regardless of the outcome, because the act itself is inherently right or wrong? → Deontological ethics
3. Which cost concept represents the benefit foregone by choosing one alternative over the next best alternative? → Opportunity cost
4. The accounts payable turnover ratio measures: → How many times a company pays off its average accounts payable balance per period
5. Which ethical principle requires a CPA to be straightforward and honest in all professional and business relationships? → Integrity
6. What is the break-even point in cost management? → The point where total revenue equals total costs
7. What is the term for costs that change in total in direct proportion to changes in the level of production activity? → Variable costs
8. What is absorption costing? → A method that includes all manufacturing costs — fixed and variable — in product cost
9. Under the AICPA Code of Professional Conduct, which principle requires a CPA not to subordinate professional judgment to that of others? → Objectivity and independence
10. What is the purpose of a feasibility study in Finance and Accounting Certification project planning? → To determine if a project is viable and worth pursuing
11. What is a stakeholder analysis in Finance and Accounting Certification planning? → Identifying and assessing the interests and influence of affected parties
12. Which costing method assigns manufacturing overhead to products using multiple activity-based cost drivers? → Activity-based costing
13. Which planning tool helps visualize project timelines in Finance and Accounting Certification? → Gantt chart
14. An accounts receivable aging schedule categorizes outstanding receivables primarily by: → The length of time invoices have been outstanding
15. In job order costing, which document accumulates all costs assigned to a specific production job? → Job cost sheet
16. The approximate annualized cost of forgoing the discount under terms '2/10, net 30' is closest to: → 37%
17. Process costing is most appropriate for companies that manufacture which type of product? → Homogeneous products in continuous production
18. What is the importance of staying current with trends in Auditing Principles & Procedures for Finance and Accounting Certification? → It ensures practices remain effective and relevant
19. In Finance and Accounting Certification, what does contingency planning involve? → Preparing backup plans for potential problems or changes
20. Which financial statement provides a snapshot of a company's financial position at a specific point in time? → Balance Sheet
21. Days Sales Outstanding (DSO) is best described as: → The average number of days it takes to collect payment after a sale
22. What is the role of documentation in Financial Statement Analysis for Finance and Accounting Certification? → It provides an accurate record for accountability and reference
23. Which of the following best describes a 'relevant cost' in managerial decision-making? → A future cost that differs between decision alternatives
24. Which of the following is an example of a discretionary fixed cost? → Annual advertising expenditure
25. Which skill is most important for success in Financial Statement Analysis within Finance and Accounting Certification? → Continuous learning and adaptation
26. What is an inherent risk in auditing? → The likelihood of a material misstatement occurring before controls
27. What is a stakeholder analysis in Finance and Accounting Certification planning? → Identifying and assessing the interests and influence of affected parties
28. What is the main purpose of internal controls in an organization? → To ensure financial reporting accuracy and prevent fraud
29. When a company pledges its accounts receivable as collateral for a line of credit, this arrangement is called: → Assignment of receivables
30. Which skill is most important for success in Payroll Processing & Administration within Finance and Accounting Certification? → Continuous learning and adaptation