IFA Study Guide 2026
Everything you need to pass the IFA 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.
📋 IFA Exam Format at a Glance
📚 IFA Topics to Study (38)
✍️ Sample IFA Questions & Answers
1. What does a current ratio of less than 1 indicate?
A current ratio below 1 means the company's current liabilities exceed its current assets, indicating potential short-term liquidity problems.
2. Under the Companies Act 2006, a small company is exempt from a statutory audit if it satisfies at least two of which thresholds?
As of 2016 the small company audit exemption thresholds are annual turnover ≤£10.2m, balance sheet total ≤£5.1m, and average employees ≤50—satisfying two of three qualifies.
3. Under the IASB Conceptual Framework, which of the following is NOT an element of financial statements?
The IASB Conceptual Framework defines five elements of financial statements: assets, liabilities, equity, income, and expenses; a budget is not one of them.
4. A calendar-year C corporation that expects to owe more than $500 in tax must make estimated tax payments. What are the four due dates?
C corporations must make estimated tax payments by April 15, June 15, September 15, and December 15 for calendar-year taxpayers.
5. What is 'fiduciary duty' as it applies to company directors?
Fiduciary duty requires directors to act in the company's best interests with honesty, loyalty, and due care, placing the company's welfare above their own personal interests.
6. What does portfolio diversification achieve for an investor?
Diversification reduces unsystematic risk because when some assets perform poorly, others may perform well, smoothing overall portfolio returns.