CFC Study Guide 2026
Everything you need to pass the CFC 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.
📋 CFC Exam Format at a Glance
📚 CFC Topics to Study (69)
✍️ Sample CFC Questions & Answers
1. When a controller applies sensitivity analysis to a valuation model, the output is best described as:
Sensitivity analysis isolates the effect of changing one variable (e.g., growth rate or discount rate) while keeping all other assumptions fixed.
2. Under IRC §199A, qualified business income (QBI) deduction for pass-through entities is generally limited to what percentage?
The §199A deduction allows eligible taxpayers to deduct up to 20% of qualified business income from pass-through entities.
3. What is the role of an ERP 'subledger' in financial accounting?
Subledgers (e.g., AR, AP, fixed assets) maintain transaction-level detail that rolls up and reconciles to the corresponding control account in the general ledger.
4. Which of the following is NOT a component of the cost of quality?
The four standard quality cost categories are prevention, appraisal, internal failure, and external failure — opportunity costs of excess capacity are not included.
5. How should CFC professionals handle confidential information related to merger & acquisition accounting?
Confidential information must be handled according to established protocols, regulatory requirements, and professional ethics standards, including proper access control and disclosure procedures.
6. A company's operating leverage is high when:
High operating leverage means a large share of fixed costs, so small revenue changes produce amplified swings in operating income.