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Article: Overhead Variance: What is a Variable Overhead Variance vs a Fixed Overhead Variance? |
Skill |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
A. General-Purpose Financial Reporting: For-Profit Business Entities |
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1. Balance sheet/Statement of financial position |
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Prepare a classified balance sheet from a trial balance and supporting documentation. |
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Article: The Basics of a Classified Balance Sheet |
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Article: Understanding Trial Balance |
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Article: Decoding the Supporting Documentation |
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Article: From Trial Balance to Classified Balance Sheet |
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Article: How to Categorize Assets, Liabilities, and Equity on a Balance Sheet |
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Article: Adjusting Entries: The Key to Accurate Financial Statements |
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Article: Common Errors in Balance Sheet Preparation |
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Article: How to Use Financial Ratios to Analyze a Balance Sheet |
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Article: Balance Sheet Practice Problems with Answers |
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Article: Balance Sheet Cheat Sheet |
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Adjust the balance sheet to correct identified errors. |
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Article: How to Make Balance Sheet Adjustments |
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Article: How to Find Balance Sheet Errors |
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Article: How to Correct Balance Sheet Errors |
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Article: How Balance Sheet Errors Affect the Financial Statements |
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Article: How to Prevent and Manage Balance Sheet Errors |
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Detect, investigate and correct discrepancies while agreeing the balance sheet amounts to supporting documentation, including the source data. |
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Article: How to Align Balance Sheet Amounts with Source Data and Documentation |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
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2. Income statement/Statement of profit or loss |
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Prepare a single-step or multi-step income statement (e.g., operating, nonoperating, discontinued operations) from a trial balance and supporting documentation. |
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Article: How to Create a Single-Step Income Statement from a Trial Balance |
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Article: How to Prepare a Multi-Step Income Statement |
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Article: How to Use Non-Operating Items in an Income Statement |
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Article: How to Prepare an Income Statement from a Trial Balance Step-by-Step |
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Article: How to Use Discontinued Operations in an Income Statement |
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Article: Operating vs Non-Operating Activities in an Income Statement |
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Article: How to Use Supporting Documentation to Create an Income Statement |
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Article: A Checklist for Creating an Accurate Income Statement: A Step-by-Step Guide |
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Article: Single-Step vs Multi-Step Income Statements Differences |
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Adjust the income statement to correct identified errors. |
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Article: How to Identify and Correct Errors in the Income Statement |
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Calculate transaction gains or losses recognized from monetary transactions denominated in a foreign currency. |
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Article: Understanding Foreign Currency Transactions on the CPA Exams: Terms to Know |
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Article: Foreign Currency Transactions Initial Recognition and Subsequent Measurement |
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Article: Foreign Currency Transactions: Translation vs Remeasurement |
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Article: How is the Functional Currency Determined in Foreign Currency Transactions? |
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Article: How Are Accounts Receivable and Accounts Payable in Foreign Currencies Treated? |
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Article: What's the Difference Between Realized and Unrealized Gains and Losses on Foreign Currency Transactions? |
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Article: How are Foreign Currency Gains and Losses Reported in the Financial Statements? |
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Article: How Do Hedging Activities Affect the Accounting of Foreign Currency Transactions? |
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Article: How Do You Translate Foreign Currency Financial Statements into the Reporting Currency? |
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Article: How Do Foreign Currency Fluctuations Affect Financial Statement Accounts? |
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Detect, investigate and correct discrepancies while agreeing the income statement amounts to supporting documentation, including the source data. |
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Article: How to Correct Discrepancies in the Income Statement and the Implications |
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Article: The Most Common Causes of Discrepancies in the Income Statement |
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Article: How to Detect Discrepancies in the Income Statement |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
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3. Statement of comprehensive
income |
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Recall the purpose, objectives and structure of the statement of comprehensive income. |
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Article: What is Other Comprehensive Income or OCI? |
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Article: Statement of Other Comprehensive Income vs Regular Income Statement |
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Article: How to Read and Understand a Statement of Other Comprehensive Income (OCI) |
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Article: How to Present the Statement of Comprehensive Income? |
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Article: How Does Other Comprehensive Income Affect Regular Income? |
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Article: How Does Other Comprehensive Income Affect Equity? |
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Identify items classified as other comprehensive income. |
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Article: What Items are Classified as Other Comprehensive Income? |
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Article: OCI vs AOCI - What's the Difference? |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
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4. Statement of changes in equity |
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Prepare a statement of changes in equity from a trial balance and
supporting documentation. |
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Article: How Do Error Corrections Affect the Statement of Changes in Equity? |
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Article: How Do Changes in Accounting Policies Affect the Statement of Changes in Equity? |
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Article: How Do OCI Items Affect Equity? |
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Article: How Does Treasury Stock Affect Equity? |
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Adjust the statement of changes in equity to correct identified errors. |
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Detect, investigate and correct discrepancies while agreeing the statement of changes in equity amounts to supporting documentation, including the
source data. |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
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5. Statement of cash flows |
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Prepare a statement of cash flow using the indirect method and required disclosures from supporting documentation. |
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Article: Operating vs Investing vs Financing Cash Flows |
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Article: What's the Purpose of the Statement of Cash Flows? |
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Article: Indirect vs Direct Method of Statement of Cash Flows |
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Article: Are Non-Cash Transactions on the Statement of Cash Flows? |
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Article: What Are the Required Disclosures for the Statement of Cash Flows? |
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Article: Where Do Interest and Dividends Go on the Statement of Cash Flows? |
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Adjust a statement of cash flows to correct identified errors. |
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Article: What are the Most Common Mistakes When Preparing a Statement of Cash Flows? |
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Detect, investigate and correct discrepancies while agreeing the statement of cash flows amounts to supporting documentation, including the source data. |
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Derive the impact of transactions on the statement of cash flows. |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
6. Consolidated financial statements
(including wholly-owned subsidiaries and noncontrolling interests) |
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Prepare consolidated financial statements (adjustments, and/or eliminations) from supporting documentation. |
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Article: What are Consolidated Financial Statements? |
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Article: Controlling Interest vs Noncontrolling Interest in Consolidated Financial Statements |
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Article: How are Intercompany Transactions Handled in Consolidated Financial Statements? |
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Article: What is the Acquisition Method in Business Combinations? |
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Article: Equity Method vs Acquisition Method in Business Combinations |
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Article: How Is Goodwill Treated in a Business Combination? |
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Article: How to Treat Foreign Subsidiaries in Consolidated Financial Statements? |
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Article: How are Joint Ventures Treated in Consolidated Financial Statements? |
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|
Adjust consolidated financial statements to correct identified errors. |
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Article: Most Common Errors When Preparing Consolidated Financial Statements |
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Detect, investigate and correct discrepancies identified while agreeing the consolidated financial statement amounts to supporting documentation, including the source data. |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
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7. Notes to financial statements |
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Adjust the notes to the financial statements to correct identified errors and omissions. |
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Compare the notes to the financial statements to the financial statements and
supporting documentation, including the source data, to identify inconsistencies
and investigate those inconsistencies. |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
B. General-Purpose Financial Reporting: Nongovernmental Not-for-Profit Entities |
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1. Statement of financial position |
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Recall the purpose and objectives of the statement of financial position for a nongovernmental, not-for-profit entity. |
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Article: Decoding the Statement of Financial Position for Nonprofits: A Beginner's Guide |
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Article: Key Differences in Financial Statements of For-Profit vs Nonprofit Organizations |
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Article: Understanding Net Asset Categories for Nonprofit Organizations |
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Article: How to Read and Interpret a Nonprofit’s Statement of Financial Position |
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Article: Asset Management in Nonprofits: What Every CPA Candidate Should Know |
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Article: Liabilities in Nonprofits: Recognizing and Reporting Unique Obligations |
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Article: A Detailed Look at Liquidity Disclosures in Nonprofit Financial Statements |
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Article: Contributions, Grants, and Donations: Recognizing Revenue in Nonprofit Organizations |
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Article: Financial Health Indicators in Nonprofit Statements of Financial Position |
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Prepare a statement of financial position for a nongovernmental, not-for-profit entity from a trial balance and supporting documentation. |
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Article: Step-by-Step Guide to Preparing a Nonprofit's Statement of Financial Position |
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Article: Best Practices for Drafting Nonprofit Financial Statements |
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Article: Navigating the Complexities of Nonprofit Financial Reporting |
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Article: Essential Tips for Accurate and Compliant Nonprofit Financial Statements |
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Article: How to Prepare and Present Nonprofit Assets and Liabilities |
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Adjust the statement of financial position for a nongovernmental, not-for-profit entity to correct identified errors. |
|
Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
2. Statement of activities |
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Recall the purpose and objectives of the statement of activities for a nongovernmental, not-for-profit entity. |
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Article: How Does Revenue Recognition Work in a Nonprofit? |
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Article: How to Read a Nonprofit Statement of Activities |
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Article: Understanding the Types of Net Assets in a Nonprofit |
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Article: Understanding Program vs Supporting Services Expenses in a Nonprofit |
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Article: Understanding Donations and Grants on a Nonprofit Statement of Expenses |
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Article: How to Read a Nonprofit Statement of Functional Expenses |
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Prepare a statement of activities for a nongovernmental, not-for-profit entity, including donor restrictions and releases from donor restrictions, from a trial balance and supporting documentation. |
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Article: How to Prepare a Indirect Method Statement of Cash Flows for a Nonprofit |
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Adjust the statement of activities for a nongovernmental, not-for-profit entity to correct identified errors. |
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Report expenses by nature and function in either the statement of activities, the notes to the financial statements or a statement of functional expenses
for a nongovernmental, not-for-profit entity. |
|
Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
3. Statement of cash flows |
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Recall the purpose and objectives of the statement of cash flows for a nongovernmental, not-for-profit entity. |
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Article: Nonprofit Statement of Cash Flows vs Regular Statement of Cash Flows |
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Article: Classifying Operating, Investing, and Financing Activities in Nonprofit Statement of Cash Flows |
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Article: How to Read a Nonprofit Statement of Cash Flows |
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Article: How to Prepare a Nonprofit Statement of Cash Flows |
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Prepare a statement of cash flows and required disclosures using the direct method or indirect method for a nongovernmental, not-for-profit entity. |
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Article: How to Prepare a Indirect Method Statement of Cash Flows for a Nonprofit |
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Article: How to Prepare a Direct Method Statement of Cash Flows for a Nonprofit |
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Adjust the statement of cash flows for a nongovernmental, not-for-profit entity to correct identified errors. |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
4. Notes to the financial statements |
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Adjust the notes to the financial statements to correct identified errors and omissions. |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
C. State and Local Government Concepts |
|
1. Measurement focus and basis of accounting |
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Recall the measurement focus and basis of accounting used by state and local governments for fund and government-wide financial reporting. |
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Article: What is the Measurement Focus in Governmental Accounting? |
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Article: What is the Basis of Accounting in Governmental Accounting? |
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Article: Government-wide Financial Statements vs Fund Financial Statements |
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Article: What is a Statement of Net Position in Governmental Accounting? |
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Article: What is a Statement of Activities in Governmental Accounting? |
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2. Purpose of funds |
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Determine the appropriate fund(s) that a state or local government should use to record its activities. |
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Article: What Are the Different Types of Funds in Government Accounting |
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Article: Governmental Funds vs Proprietary Funds vs Fiduciary Funds |
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Article: What is the General Fund in Governmental Accounting? |
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Article: What are Special Revenue Funds in Governmental Accounting? |
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Article: What are Debt Service Funds in Governmental Accounting? |
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Article: What are Capital Project Funds in Governmental Accounting? |
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Article: What are Proprietary Funds in Governmental Accounting? |
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Article: What are Fiduciary Funds in Governmental Accounting? |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
D. Public Company Reporting Topics |
|
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|
Recall the purpose of forms 10-Q, 10-K and 8-K that a U.S. registrant is required to file with the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934. |
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Article: What is the Purpose of Form 10-Q? |
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Article: What is the Purpose of Form 10-K? |
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Article: What is the Purpose of Form 8-K? |
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|
Identify the items of Form 10-Q (Part I Items 1 through 3) and Form 10-K (Part II Items 7, 7A and 8) filed with the U.S. Securities and Exchange Commission. |
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Article: What are Items 1-3 of Part 1 of Form 10-Q? |
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Article: What are Items 7, 7A, and 8 in Part II of Form 10-K? |
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Calculate basic earnings per share and diluted earnings per share considering the impact of stock options, preferred stock, convertible preferred stock and/or convertible debt. |
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Article: How to Calculate Basic Earnings Per Share |
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Article: How to Calculate Diluted Earnings Per Share |
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Article: How Do Stock Options Affect Earnings Per Share? |
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Article: How Does Preferred Stock Affect Earnings Per Share? |
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Article: How Does Convertible Preferred Stock Affect Earnings Per Share? |
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Article: How Does Convertible Debt Affect Earnings Per Share? |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
E. Special Purpose Frameworks |
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Recall appropriate financial statement titles to be used for the financial statements prepared under a special purpose framework. |
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Article: How to Title Financial Statements Prepared Under a Special Purpose Framework |
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|
Perform calculations to convert cash basis or modified cash basis financial statements to accrual basis financial statements. |
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Article: How to Convert Cash Basis Financial Statements to Accrual Basis |
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Article: How to Convert Modified Cash Basis Financial Statements to Accrual Basis |
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|
Prepare financial statements using the cash basis or modified cash basis of accounting. |
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Article: How to Prepare Financial Statements Using the Cash Basis |
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Article: How to Prepare Financial Statements Using the Modified Cash Basis |
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|
Prepare financial statements using the income tax basis of accounting. |
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Article: How to Prepare Financial Statements Using the Income Tax Basis of Accounting |
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Content group/topic |
Remembering & Understanding |
Application |
Analysis |
Evaluation |
Representative Task |
|
F. Financial Statement Ratios and Performance Metrics |
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|
Identify the appropriate financial statement ratio or performance metric to perform a specified type of analysis. |
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Article: Basics of Using Financial Statement Ratios to Analyze Financial Statements |
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|
Article: Basics of Using Performance Metrics to Analyze Financial Statements |
|
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|
|
Calculate profitability ratios (e.g., gross profit margin, return on sales, return on assets, return on equity). |
|
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|
Article: How to Use Profitability Ratios to Analyze Financial Statements |
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Article: Understanding and Using Gross Profit Margin to Analyze Profitability |
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Article: Understanding and Using Return on Sales to Analyze Profitability |
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Article: Understanding and Using Return on Assets to Analyze Profitability |
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Article: Understanding and Using Return on Equity to Analyze Profitability |
|
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|
|
Calculate liquidity ratios (e.g., current, quick, accounts receivable turnover, inventory turnover, accounts payable turnover). |
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|
Article: How to Use Liquidity Ratios to Analyze Financial Statements |
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Article: Understanding and Using the Current Ratio to Analyze Liquidity |
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Article: Understanding and Using the Quick Ratio to Analyze Liquidity |
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Article: Understanding and Using the Accounts Receivable Turnover Ratio to Analyze Liquidity |
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Article: Understanding and Using the Inventory Turnover Ratio to Analyze Liquidity |
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Article: Understanding and Using the Accounts Payable Turnover Ratio to Analyze Liquidity |
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|
Calculate solvency ratios (e.g., debt-to-equity, total debt, times interest earned). |
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|
Article: How to Use Solvency Ratios to Analyze Financial Statements |
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Article: Understanding and Using the Debt to Equity Ratio to Analyze Solvency |
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Article: Understanding and Using the Total Debt Ratio to Analyze Solvency |
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Article: Understanding and Using the Times Interest Earned Ratio to Analyze Solvency |
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|
Calculate performance metrics (e.g., EBITDA, price-to-earnings, dividend payout, asset turnover). |
|
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|
Article: How to Use Performance Metrics to Analyze Financial Statements |
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Article: How to Use EBITDA to Analyze Financial Statements |
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Article: How to Use the Price to Earnings Ratio to Analyze Financial Statements |
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Article: How to Use the Dividend Payout Ratio to Analyze Financial Statements |
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Article: How to Use the Asset Turnover Ratio to Analyze Financial Statements |
|
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|
|
Calculate variances between budget and actual results. |
|
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|
Article: What is a Master Budget vs a Flexible Budget in Accounting? |
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Article: What is Variance Analysis in Financial Reporting? |
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|
Article: What is a Sales Volume Variance vs a Sales Price Variance? |
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|
Article: Direct Material Variance: What is a Material Price Variance vs a Material Quantity Variance? |
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Article: Direct Labor Variance: What is a Labor Rate Variance vs a Labor Efficiency Variance? |
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Article: Overhead Variance: What is a Variable Overhead Variance vs a Fixed Overhead Variance? |
