CA Cheat Sheet 2026

The 30 highest-yield CA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What does informed consent require in Chartered Certified Accountant practice? → Full disclosure of relevant information before obtaining agreement
2. SOX Section 404 requires management and external auditors to report on the effectiveness of which of the following? → Internal control over financial reporting
3. A U.S. taxpayer living abroad can exclude foreign earned income under IRC §911. What is the maximum foreign earned income exclusion for 2024? → $126,500
4. Which IRS form is used to report transactions with foreign trusts and receipt of certain foreign gifts under IRC §§6048 and 6039F? → Form 3520
5. Which approach best supports quality outcomes in Auditing Principles & Procedures for Chartered Certified Accountant? → Systematic application of evidence-based methods
6. A US manufacturer acquires a raw material supplier to reduce input costs. This is an example of: → Backward vertical integration
7. A company's operating cash flow is $400,000, net income is $320,000, and total assets are $2,000,000. What is the cash return on assets? → 20%
8. Which approach best supports quality outcomes in Corporate Finance & Investment for Chartered Certified Accountant? → Systematic application of evidence-based methods
9. What is the primary purpose of a Section 1031 like-kind exchange? → To defer recognition of capital gain on exchanged business property
10. What is a stakeholder analysis in Chartered Certified Accountant planning? → Identifying and assessing the interests and influence of affected parties
11. A corporation has a capital loss of $50,000 in the current year and no capital gains. How may this capital loss be treated? → Carried back 3 years and forward 5 years to offset capital gains only
12. The DuPont analysis decomposes return on equity (ROE) into which three components? → Net profit margin, asset turnover, and equity multiplier
13. What is the role of documentation in Auditing Principles & Procedures for Chartered Certified Accountant? → It provides an accurate record for accountability and reference
14. Which budgeting approach requires all expenditures to be justified from scratch each period, starting from a zero base? → Zero-based budgeting
15. The Sarbanes-Oxley Act Section 302 requires which of the following from public company CEOs and CFOs? → Personal certification of the accuracy of financial reports
16. Which type of tax applies to goods and services at each stage of production? → Value Added Tax (VAT)
17. Under the concept of 'professional skepticism,' an auditor is required to do which of the following? → Question evidence and maintain a critical, questioning mindset throughout the audit
18. In a make-or-buy decision, which cost is IRRELEVANT to the analysis? → Depreciation of dedicated machinery that cannot be redeployed or sold
19. A taxpayer contributes $6,000 to a Health Savings Account (HSA). What is the primary federal tax advantage of an HSA? → Contributions are deductible, grow tax-free, and qualified withdrawals are tax-free
20. Which risk measure captures only the systematic (non-diversifiable) component of a security's total risk? → Beta
21. A company pays employees on a semi-monthly basis. How many payroll periods occur annually? → 24
22. Which form must employers file to report annual federal unemployment (FUTA) tax? → Form 940
23. Which of the following is NOT a qualifying reason to avoid the 10% early withdrawal penalty from a traditional IRA? → Purchase of a vacation home
24. Which accounting principle requires companies to record revenue when earned, regardless of when cash is received? → Accrual accounting principle
25. What is the role of mentoring in Chartered Certified Accountant professional development? → Guiding and supporting professional growth through experience sharing
26. Which tax planning strategy involves shifting income-producing assets or investments to family members in lower tax brackets? → Income splitting
27. When assessing going concern under ISA 570, which period must management evaluate? → At least 12 months from the date the financial statements are authorized for issue
28. Which of the following is NOT one of the five components of the COSO Internal Control – Integrated Framework? → Profit Optimization
29. What leadership style is most effective for building team autonomy in Chartered Certified Accountant? → Delegative (laissez-faire) leadership for experienced teams
30. Which of the following is an example of a preventive control? → Segregation of duties between authorization and recording