CPA (ABC) case studies
CPA · Put your knowledge to work in context.
The Uniform CPA Examination is the licensing exam that candidates must pass to become a Certified Public Accountant in the United States. It is aimed at accounting graduates and professionals who have completed their jurisdiction's education and experience requirements and who intend to practice public accounting, industry, government, or nonprofit finance. The exam is administered by the AICPA and CIMA, the Association of International Certified Professional Accountants, which describes itself as "the global voice of the accounting and finance profession, founded by the American Institute of CPAs and The Chartered Institute of Management Accountants." Because the official exam pages could not be retrieved at the time of writing, this profile does not state the number of exam sections, testing time, passing score, fees, retake rules, or score validity; those values are left blank pending an authoritative source. Preparation typically combines a structured review course, disciplined practice with multiple-choice and task-based simulations, and repeated rehearsal of timing under exam-like conditions. The CPA case studies are 5 cases and about 2,634 words.
1Revenue Cutoff Under Bill-and-Hold Terms
Delta Components is a calendar-year private manufacturer audited under PCAOB standards because it has public debt. On December 28, Year 1, Delta invoices Coastal Retail 4.2 million for 60,000 units and records revenue.
572 words, about 3 min2Goodwill Impairment - Qualitative vs. Quantitative Assessment
Summit Holdings, a public company, has one reporting unit (Consumer Brands) with a carrying amount of 180 million, including 70 million of goodwill, at October 1 (its annual impairment testing date). At the prior year test, the fair value exceeded carrying amount by 8%.
524 words, about 3 min3Lease Classification and the Discount Rate
Vantage Logistics (lessee) enters a 7-year lease for warehouse space on January 1, Year 1. Payments are $500,000 annually, due at the beginning of each year (annuity due).
571 words, about 3 min4Like-Kind Exchange and Boot
Marta exchanges a rental building (adjusted basis 300,000; fair market value 520,000) for another rental building (FMV 430,000) plus 90,000 cash. Both properties are held for productive use in a trade or business and qualify under IRC §1031.
424 words, about 2 min5Subsequent Events and the Auditor's Report Date
Orion Manufacturing has a December 31, Year 1 year-end. Fieldwork concludes March 5, Year 2, and the auditor plans to date the report March 5.
543 words, about 3 min