The Complete Guide to CPA Exam Flashcards
The Uniform CPA Examination, administered by the American Institute of Certified Public Accountants (AICPA), is one of the most challenging professional certifications in business. With four comprehensive sections and a required passing score of 75 on each, effective study strategies are essential. Flashcards remain one of the most proven methods for mastering the vast content tested on the CPA exam.
Understanding the Four CPA Exam Sections
Before creating flashcards, understand what each section covers:
- FAR (Financial Accounting and Reporting): The most content-heavy section covering GAAP, government accounting, nonprofit accounting, and consolidated financial statements
- AUD (Auditing and Attestation): Audit procedures, professional responsibilities, ethics, and reporting standards per AICPA auditing standards
- REG (Regulation): Federal taxation for individuals, businesses, and entities, plus business law and professional ethics
- BEC (Business Environment and Concepts): Corporate governance, economics, financial management, IT, and operations management
CPA Exam Requirements
To sit for the CPA exam, candidates must meet educational requirements including the completion of 150 credit hours—typically a bachelor's degree plus an additional 30 credits. Most states require specific accounting and business course credits. After passing all four sections, candidates must complete state-specific experience requirements to obtain licensure.
Creating Effective CPA Flashcards
The CPA exam tests both conceptual understanding and application. Your flashcards should reflect this:
Definition card: "What is a deferred tax liability?" → "A liability arising when taxable income will exceed book income in future periods, creating future tax obligations. Common causes: accelerated tax depreciation, installment sales recognition."
Journal entry card: "Record bond issuance at premium" → "Dr. Cash (face + premium), Cr. Bonds Payable (face), Cr. Premium on Bonds Payable (premium). Premium amortized over bond life using effective interest method."
Application card: "When is an auditor's report modified?" → "Material misstatement or scope limitation. Qualified: material but not pervasive. Adverse: material and pervasive misstatement. Disclaimer: pervasive scope limitation."
Organizing Your CPA Flashcard Deck
- FAR Cards: Financial statements, revenue recognition, leases, bonds, equity, pensions, government/nonprofit (200-300 cards)
- AUD Cards: Audit risk, evidence, internal control, sampling, reports, ethics (150-200 cards)
- REG Cards: Individual tax, business tax, property transactions, entities, business law (150-200 cards)
- BEC Cards: Corporate governance, economics, cost accounting, IT, financial management (100-150 cards)
LectureScribe creates flashcards from your CPA review course lectures, capturing the specific topics and mnemonics your instructor emphasizes—essential for the task-based simulations that require deep application of concepts.