CPA Exam For Dummies with Online Practice E-Book

Kenneth W. Boyd

• Herausgeber: John Wiley & Sons
• Kategorie: Bildung
• Sprache: Englisch

Seitenzahl: 544

Veröffentlichungsjahr: 2014

Beschreibung

Get started on the path to passing the CPA exam today Passing the CPA exam can be the first step to a long and rewarding career. With CPA Exam For Dummies, you'll get a full overview of the exam, information on how to register, the requirements for taking and passing the tests, as well as a review of the four sections. This comprehensive introductory study guide provides you with a wealth of information, including all the current AICPA content requirements in auditing and attestation, business environment and concepts, financial accounting and reporting, and accounting regulation. From start to finish, the text is designed to prepare you for each portion of this rigorous exam. Preparing for the CPA exam can be a daunting process. With the classic For Dummies approach, CPA Exam For Dummies offers an overview and steps on how to get started. Go at your own pace to master the various sections of the exam, and use the book as a reference on an ongoing basis as you prepare for the exam portions. Dive into the book to find: * An overview of the CPA exam, featuring exam organization and information on scoring * A content review, including practice questions and explanations of answers * Online bonus practice exams to boost your knowledge and confidence * An overview of the benefits of passing the CPA exam and becoming a certified public accountant For those seeking to pass the CPA exam and launch their accounting careers, CPA Exam For Dummies is the go-to resource for getting started!

Leseprobe

CPA Exam For Dummies®

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2014 by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Trademarks: Wiley, For Dummies, the Dummies Man logo, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc., and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc., is not associated with any product or vendor mentioned in this book.

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: WHILE THE PUBLISHER AND AUTHOR HAVE USED THEIR BEST EFFORTS IN PREPARING THIS BOOK, THEY MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS BOOK AND SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES REPRESENTATIVES OR WRITTEN SALES MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR YOUR SITUATION. YOU SHOULD CONSULT WITH A PROFESSIONAL WHERE APPROPRIATE. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM.

For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax [phone]. For technical support, please visit www.wiley.com/techsupport.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Control Number: 2014934808

ISBN 978-1-118-81373-7 (pbk); ISBN 978-1-118-81379-9 (ebk); ISBN 978-1-118-81362-1 (ebk)

Manufactured in the United States of America

10 9 8 7 6 5 4 3 2 1

CPA Exam For Dummies

Visit www.dummies.com/cheatsheet/cpaexam to view this book's cheat sheet.

Table of Contents

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part I: Getting Started with the CPA Exam

Chapter 1: So You Want to Become a CPA

Added Responsibilities with a CPA Designation

Considering What a CPA Does

Accounting work and controller positions

Auditing, reviews, and compilations

Preparing tax returns

Branching out into other careers

Comparing a CPA to Other Credentials

Checking out the chartered financial analyst (CFA) credential

Mulling over the certified valuation analyst (CVA) credential

Understanding the CPA Licensing Requirements

Knowing what you need for a license to practice public accounting

Walking through CPA exam topics

Chapter 2: Getting Acquainted with the CPA Exam

Knowing What’s on the Exam

Financial accounting and reporting

Auditing and attestation

Regulation

Business environment and concepts

Understanding the Exam Format

Navigating the online tests

Encountering different types of questions

Looking at the structure of the tests

Going Over the Skills You Need to Succeed on the Exam

Applying a body of knowledge

Written communication

Understanding How the Tests Are Weighted

How Did You Do? Knowing How The Exam Is Graded

Chapter 3: Preparing to Take the Exam

Making Sure You’ve Met the Prerequisites

Considering your amount of education

Adding in your experience

Reviewing the licensing requirements

Applying to Take the Exam

Applying for special accommodations

Scheduling the Exam

Where to take the test

When to take it

Canceling and rescheduling your test date

Considerations before the Exam

Having a study plan

Psyching yourself up

Arriving at the Test Center

Sitting at the Exam

Following the rules

Helping to improve the exam for others

Chapter 4: Implementing a Study Program

Putting Together a Strategy for Multiple-Choice Questions

Going over the structure of a question

Mulling over traits of a well-written question

Answering a multiple-choice question

Considering Task-Based Simulations

Audit and attestation (AUD) simulation

Financial accounting and reporting (FAR) simulation

Looking at Written Communication Questions

Setting an Overall Study Schedule

Scheduling factors to consider

Using a study planner

Creating a Study Plan For Each Test

Auditing and attestation study plan

Financial accounting and reporting study plan

Regulation study plan

Business environment and concepts study plan

Following Up after Your Tests

Considering your results

Appealing your score

Part II: Business Environment and Concepts

Chapter 5: Taking a Closer Look at the Business Environment and Concepts Test

Governing a Company’s Business Activities

Considering the board of directors

Judging the firm’s control environment

Segregating duties to reduce risk

Using Economic Analysis

Reviewing your competition

Would you like another? Forecasting sales using marginal utility

Relating currency to imports and exports

Managing and Business Decisions

Deciding whether to extend credit

Pricing a special order

Mulling over outsourcing

Reviewing the use of capital

Assessing Information Systems

Deciding on computer technology needs

Weighing IT security

Strategic Planning

Cause and effect: Managing with balanced scorecards

Plans versus results: Budgeting with variance analysis

Operating the Business and Related Accounting Issues

Going over ratios to measure performance

Aligning goals with incentives: The impact of incentive compensation

Measuring costs

Chapter 6: Business Environment and Concepts Practice Questions

Corporate Governance

Cost Measurement and Assignment

Economics and Strategy

Financial Management

Information Technology

Performance Measures

Planning, Control, and Analysis

Risk Management

Chapter 7: Answers to Business Environment and Concepts Practice Questions

Corporate Governance

Cost Measurement and Assignment

Economics and Strategy

Financial Management

Information Technology

Performance Measures

Planning, Control, and Analysis

Risk Management

Part III: Financial Accounting and Reporting

Chapter 8: Taking a Closer Look at the Financial Accounting and Reporting Test

Starting with Standards for Financial Statements

Reviewing regulators and reporting methods

Going over specific financial statements

Choosing an accounting basis

Going Through the Accounts

Checking out asset accounts

Catching up on liabilities and equity

Wrapping up with revenue

Considering Important Transactions and Events

Correcting errors and reviewing accounting changes

Going over other income statement activity

Adding other required disclosures

Accounting for Government Entities

Checking out financial reports for a general fund

Presenting appropriations, encumbrances, and expenditures

Keeping Up with Not-for-Profits

Starting with the statement of financial position

Moving on to the statement of activities

Adding in the statement of cash flows and notes

Chapter 9: Financial Accounting and Reporting Practice Questions

Business Combinations and Consolidations

Basic Concepts

Error Correction

Accounting Changes

Inventory

Fixed Assets

Monetary Current Assets and Liabilities

Present Value Fundamentals

Present Value Bonds

Present Value Debt Restructure

Present Value Pension

Present Value Leases

Deferred Taxes

Stockholders’ Equity

Investments

Statement of Cash Flows

Personal Financial Statements

Interim Reporting

Segment Reporting

Partnership Accounting

Chapter 10: Answers and Explanations to Financial Accounting and Reporting Practice Questions

Business Combinations and Consolidations

Basic Concepts

Error Correction

Accounting Changes

Financial Statements

Inventory

Fixed Assets

Monetary Current Assets and Liabilities

Present Value Fundamentals

Present Value Debt Restructure

Present Value Pension

Deferred Taxes

Stockholders’ Equity

Investments

Statement of Cash Flows

Personal Financial Statements

Interim Reporting

Segment Reporting

Partnership Accounting

Part IV: Auditing and Attestation

Chapter 11: Taking a Closer Look at the Auditing and Attestation Test

Understanding the Engagement

Defining an audit

Gaining knowledge of the client

Planning in more detail

Assessing the Company and Internal Controls

Resolving materiality, risk assessment, and fraud

Reviewing an internal control environment

Performing Audit Procedures

Deciding on procedures for the audit

Introducing sampling

Considering the Results of Your Audit Work

Reading an unqualified audit opinion

Adding explanatory language to an unqualified report

Going over other audit opinions: Qualified, adverse, or no opinion

Creating reports on internal controls and other work

Going Over Accounting and Review Engagements

Meeting minimum SSARS requirements

Working on a compilation engagement

Going over a review engagement

Moving through Professional Responsibilities

Chapter 12: Auditing and Attestation Practice Questions

Auditing and Review Services

Auditing with Technology

Audit Sampling

Engagement Planning

Evidence

Internal Control

Reporting

Professional Responsibilities

Chapter 13: Answers and Explanations to Auditing and Attestation Practice Questions

Auditing and Review Services

Auditing with Technology

Audit Sampling

Engagement Planning

Evidence

Internal Control

Reporting

Professional Responsibilities

Part V: Regulation

Chapter 14: Taking a Closer Look at the Regulation Test

Addressing the CPA’s Responsibilities

Understanding ethics requirements for a CPA practice

Considering your legal duties and responsibilities

Mulling Over Business Law Issues

Presenting the concept of agency

Getting up to speed on contracts

Using the Uniform Commercial Code (UCC) and credit relationships

Choosing a business structure and other regulations

Taking on security regulation

Calculating Gift and Estate Tax

Checking out the gift tax calculation

Remembering property transfers

Taxing Individuals

Filing a return

Visualizing the individual tax return

Adjusting the records to arrive at taxable income

Wrapping Up the Business Taxation

Using a C corporation

Applying a partnership structure

Taxing Trusts and Estates

Introducing distributable net income

Commenting on trust taxation

Working on estate taxation

Chapter 15: Regulation Practice Questions

Agency

Bankruptcy

Business Structure

Contracts

Commercial Paper

Corporate Taxation

Debtor-Creditor Relationships

Regulation of Employment

Federal Securities

Other Tax Topics

Individual Taxation

Professional/Legal Responsibilities

Property

Partnership Taxation

Sales

Secured Transactions

Chapter 16: Answers and Explanations to Regulation Practice Questions

Agency

Bankruptcy

Business Structure

Contracts

Commercial Paper

Corporate Taxation

Debtor-Creditor Relationships

Regulation of Employment

Federal Securities

Other Tax Topics

Individual Taxation

Professional/Legal Responsibilities

Property

Partnership Taxation

Sales

Secured Transactions

Part VI: The Part of Tens

Chapter 17: Ten Common Mistakes on the CPA Exam

Skipping Your Notes When You Review Your Answers

Not Knowing the Language in Audit Reports

Not Understanding Segregating Duties

Applying Accounting Policy Inconsistently

Not Reviewing Financial Ratios by Type

Forgetting to Consider the Type of Taxation

Not Memorizing the Tax Format on Form 1040

Confusing Present Value and Future Value

Failing to Keep the Big Four Type of Costs Straight

Not Considering Employer Responsibilities for Individual Contractors

Chapter 18: Ten Important Formulas to Understand

Breakeven in Total Dollars and Units Sold

Accrued Interest Paid by a Bond Buyer

Double-Declining Balance Depreciation

Multi-Step Income Statement

Inventory Turnover

Receivable Turnover

Effective Interest Rate Method

Special-Order Profitability

Individual Taxation Formula: Form 1040

Liquidity and Solvency Formulas

Appendix: Linking to Wiley CPAexcel

Understanding What the Test Bank Has to Offer

Accessing Your Free Subscription

Purchasing Wiley CPAexcel to Continue Your Practice

Where to Go for Help

About the Author

Cheat Sheet

Guide

Table of Contents

Begin Reading

Pages

1

2

3

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

169

170

171

172

173

174

175

177

178

179

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

253

254

267

268

Introduction

So you’re interested in becoming a CPA, huh? Good for you! A CPA certification opens all kinds of doors for you professionally that are closed to accountants without this certification. Let me warn you, though: The CPA exam is challenging. You’re going to need to organize and study an enormous amount of data. Lucky for you, CPA Exam For Dummies makes studying for the exam easier.

About This Book

I took the CPA exam myself and passed it in the early ’90s. Passing all four sections took me multiple tries. I really struggled, and I now know why. I didn’t think through the process of creating and implementing a plan of study. I just dove in with no real plan of attack. I wrote this book, in part, to provide that attack plan for you.