Everyone has a basic understanding of income taxes, because we all file personal income tax returns. The CPA exam, however, covers two other forms of tax that are assessed differently. An individual may need to assess estate tax, which is based on the dollar amount of a person’s estate when they pass away.

What do you need to know about accrual accounting for CPA?

Accrual accounting requires CPAs to use the matching principle, which states that revenue should be posted when earned and that expenses are booked when incurred to generate revenue. Some exam candidates may be confused by accrual journal entries, so here’s a brief rundown:

Can you use estimates on a CPA exam?

Yes, using estimates is a common practice in accounting, so it makes sense that they would play a major part of many CPA exam questions. This is a cost accounting concept that is unclear to many exam candidates. To clarify this issue, remember that fixed cost per unit can present a distorted picture of the true cost of a product or service.

Why are intercompany transactions eliminated on a CPA exam?

Intercompany transactions are eliminated in consolidation, because the consolidated financial statements only include transactions with third parties. Inventory can be valued using several methods. Hence, applying these methods to CPA exam questions can be confusing.

Study the CPA Exam Blueprints to learn about the specific topics tested in each Exam section. Practice with the sample tests before your test day to learn about the Exam’s format and functionality. You can take the Exam during any one of four “testing windows.”* To apply for the Exam, visit NASBA’s CPA Central.

How to prepare for the NASBA CPA exam?

Review NASBA’s Candidate Bulletin for details about the process to become a CPA. Check out This Way to CPA for helpful information and support. Learn the Exam’s format and functionality by practicing with the sample tests and accessing the tutorial topics found by selecting the “Help” button in each sample test.

How many credit hours do you need to become a CPA?

Generally you must have 150 credit hours of education with a concentration in accounting. This includes: Must have a minimum of one year of experience (approximately 2,000 hours) verified by a licensed CPA. For licensure specific requirement information, visit the NASBA website or contact your Board of Accountancy.

Are there different CPA requirements for each state?

CPA requirements by state have a lot of variations, but today, the field is a lot smoother and more regulated than it used to be, thanks to the NASBA and the Uniform CPA Exam.