CGA Cheat Sheet 2026

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

1. Which substantive procedure is most effective for verifying the existence of accounts receivable? → Sending positive confirmation requests to customers
2. What does the term 'systematic risk' refer to in portfolio theory? → Risk inherent to the entire market that cannot be diversified away
3. Which element is NOT required for a valid contract under US contract law? → Written documentation
4. In the context of the balanced scorecard, a 'lag indicator' is best described as: → An outcome measure that reports results after they have occurred
5. What is the term for the deliberate failure to pay taxes owed? → Tax evasion
6. Which form must US persons use to report their interests in foreign trusts and receipt of certain foreign gifts under IRC §§ 6048 and 6039F? → Form 3520
7. Porter's Five Forces model is primarily used in strategic management to: → Assess the level of competitive intensity and profitability potential of an industry
8. What is the primary purpose of corporate governance frameworks such as those recommended by the COSO? → To provide guidance on internal controls, risk management, and ethical governance
9. Which of the following is NOT a component of Other Comprehensive Income (OCI)? → Gains on sale of equipment
10. Which of the following is an example of a 'learning curve' effect in cost behavior? → Average labor time per unit decreasing as cumulative production doubles
11. A contingent liability should be accrued when the likelihood of loss is probable AND the amount can be: → Reasonably estimated
12. Under ASC 606, variable consideration (e.g., rebates, discounts) should be included in the transaction price only to the extent it is: → Probable that a significant reversal will not occur
13. Which type of stock gives holders priority over common stockholders in dividend payments? → Preferred stock
14. Which of the following best describes a cost center within a responsibility accounting system? → A unit held responsible only for the costs it incurs
15. Which statement best explains 'depreciation' in financial reporting? → An expense representing wear and tear
16. A company sells a product for $1,000 with a 2/10, n/30 payment term. If the customer pays within 10 days, what is the cash received? → $980
17. The return on investment (ROI) formula divides net income by: → Total assets
18. Which depreciation method allocates the highest depreciation expense in the early years of an asset's life? → Double-declining balance
19. A strategic map in the balanced scorecard is best described as: → A visual diagram showing cause-and-effect links among strategic objectives
20. Under the US consolidated return regulations, which of the following is a benefit of filing a consolidated federal income tax return? → Losses of one member can offset income of another member
21. Which tax form is typically used by individuals to file their annual income tax return? → Form 1040
22. Which type of variance measures the difference between actual hours worked and standard hours allowed, multiplied by the standard labor rate? → Labor efficiency variance
23. When computing diluted EPS, stock options with an exercise price BELOW the average market price are: → Included using the treasury stock method
24. What does the 'integrity' component of the CIA triad in information security mean? → Data is accurate, complete, and has not been improperly modified
25. The degree of operating leverage (DOL) measures sensitivity of EBIT to changes in: → Sales revenue
26. Under the full disclosure principle, which of the following requires footnote disclosure even if not recorded on the balance sheet? → Possible contingent liabilities not meeting accrual criteria
27. Which of the following best describes a data warehouse? → A centralized repository of integrated data used for analysis and reporting
28. A company has EPS of $4.00 and reports a P/E ratio of 15. What is the market price per share? → $60.00
29. Which of the following best describes the concept of 'due professional care' in an audit? → Exercising the skill and diligence that a competent professional would apply
30. Which of the following is NOT a characteristic of a not-for-profit organization under Canadian accounting standards? → Its primary purpose is to provide goods or services at a profit