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 (22)
✍️ 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. 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.
3. 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.
4. What does SaaS (Software as a Service) mean for accounting software delivery?
SaaS accounting software is accessed via the internet on a subscription model, eliminating the need for local installation, hardware maintenance, or manual updates.
5. What is a 'Statement of Affairs' in insolvency proceedings?
The Statement of Affairs is prepared at the commencement of insolvency and lists assets at their expected liquidation values alongside liabilities ranked by payment priority, giving creditors a picture of expected recoveries.
6. Which accounting concept requires that financial statements be prepared with caution to avoid overstatement of assets and income?
The prudence concept ensures that liabilities and expenses are recognized as soon as possible, but revenues only when they are assured.