CPA (CPA Exam) study guide
CPA · Work through your exam, one topic at a time.
The Uniform CPA Examination is the licensing exam that individuals must pass to become licensed as U.S. Certified Public Accountants. Its stated purpose is public protection: the exam helps ensure that only qualified individuals become licensed as CPAs. Candidates generally sit for it after completing their accounting education and meeting the requirements of the jurisdiction they apply through, since eligibility is a prerequisite - before you can apply to take a section of the CPA Exam, you must be declared eligible. The CPA study guide has 4 sections and about 1,470 words.
01AUD - Audit Risk, Evidence, and Reporting
Audit risk (AR) is the risk the auditor issues an unmodified opinion on materially misstated statements. AR = RMM × DR, where RMM = IR × CR.
345 words, about 2 min02FAR - Core Measurement and Recognition Frameworks
Identify the contract, identify performance obligations, determine the transaction price (variable consideration measured by expected value or most likely amount, then constrained to amounts not probable of reversal), allocate by relative standalone selling price, and recognize over time or at a point in time when control transfers. A lessee records a right-of-use asset and liability for nearly every lease over 12 months.
382 words, about 2 min03REG - Taxation and Business Law
Partnership and S corporation formation is generally tax-free, and the shareholder/partner takes a carryover basis increased by any gain recognized. S corporation eligibility: no more than 100 shareholders, eligible shareholders only (individuals, estates, certain trusts - not partnerships or corporations), one class of stock, and a domestic entity.
364 words, about 2 min04Discipline Section - Analysis, Controls, and Planning
The Discipline section tests whether you can apply a smaller body of rules to unfamiliar fact patterns. Business Analysis and Reporting leans on ratio analysis, variance analysis, cost accounting, forecasting, valuation, derivatives and hedging, and segment/discontinued-operations reporting.
379 words, about 2 min