IFA Cheat Sheet 2026

The 30 highest-yield IFA 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 tax treatment of employer-provided health insurance premiums paid on behalf of employees? → Excluded from employee's gross income and deductible by employer
2. How are assets typically valued in a forced liquidation scenario? → At net realizable value, which is typically below fair market value
3. A prospective employer asks an IFA member to inflate projected earnings in a business plan to secure a bank loan. The member should: → Refuse and consider whether to resign if pressure continues
4. A company receives a government grant to purchase equipment. Under IAS 20, this grant may be presented as: → Deferred income or deducted from the asset's carrying amount
5. Which of the following situations would most likely trigger a statutory duty to report suspicions of money laundering under UK law? → A client insists on paying large cash fees and cannot explain the source of funds
6. Which financial ratio measures how efficiently a company uses its assets to generate revenue? → Asset turnover ratio
7. Under IAS 2, which inventory cost formula is NOT permitted? → LIFO
8. What is a break-even analysis used for in decision making? → Determining the sales level at which total revenue equals total costs
9. Under IFRS 16, a lessee must recognize at the commencement of a lease: → Both a right-of-use asset and a lease liability
10. Throughput accounting focuses on maximising: → Contribution per unit of the binding constraint (bottleneck resource)
11. In a Chapter 7 liquidation, which class of creditors is paid FIRST from the estate's assets? → Secured creditors, to the extent of their collateral value
12. Under the Companies Act 2006, a small company is exempt from a statutory audit if it satisfies at least two of which thresholds? → Turnover ≤£10.2m, balance sheet ≤£5.1m, employees ≤50
13. 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? → April 15, June 15, September 15, December 15
14. Under IFRS, what is the principle of 'faithful representation'? → It ensures unbiased and accurate financial reporting
15. Which financial statement shows changes in equity between two reporting dates? → Statement of changes in equity
16. In cost-volume-profit (CVP) analysis, what is the break-even point? → Point where total costs equal total revenues
17. Which variance measures the difference between the actual price paid for materials and the standard price, multiplied by actual quantity purchased? → Material price variance
18. Why is continuing professional development (CPD) important for accountants? → To maintain competence and relevance
19. Which ratio best measures a company's ability to meet its immediate short-term obligations without selling inventory? → Quick (acid-test) ratio
20. What is working capital and why is it important? → Current assets minus current liabilities; it measures short-term operational liquidity
21. What is the primary objective of an external audit? → To provide an independent opinion on the truth and fairness of financial statements
22. Which provision of the Bribery Act 2010 (UK) creates a strict liability corporate offence? → Section 7 — failure of a commercial organisation to prevent bribery
23. What is net present value (NPV) used for in financial decision making? → Determining whether an investment creates value by discounting future cash flows
24. Activity-based costing (ABC) improves overhead allocation by: → Using cost drivers that reflect the actual consumption of resources by each product
25. What is a rights issue in corporate finance? → An offer of new shares to existing shareholders in proportion to their current holdings
26. Which payroll tax form must employers file quarterly to report wages paid, federal income tax withheld, and Social Security and Medicare taxes? → Form 941
27. What is a 'qualified audit opinion' based on material misstatement? → An opinion stating that except for a specific matter, the financials are fairly presented
28. The 'reasonable and informed third party' test in professional ethics requires a member to ask whether: → A knowledgeable outsider would conclude the member has acted ethically
29. Which government agency oversees tax collection in the UK? → HMRC
30. Under IAS 12, a deferred tax liability arises from: → A taxable temporary difference