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Exams, Business & Humanities English 6 Interactive Flashcard Decks

CPA Exam (FAR/AUD/REG), CFA Level 1, FINRA SIE / Series 7 & Real Estate License Study Guide

Pass the Uniform CPA Exam, CFA Level 1, FINRA SIE & Series 7, and National Real Estate Licensing Exam using 192 active-recall flashcards covering GAAP, Audit, Tax, Fixed Income, Options, and Property Law.

Practice 6 Curated CPA Accounting, CFA Level 1, FINRA SIE / Series 7 & Real Estate Licensing Exam Decks ↓ Browse All CPA Accounting, CFA Level 1, FINRA SIE / Series 7 & Real Estate Licensing Exam Flashcards →

Pass the Uniform CPA Exam, CFA Level 1, FINRA SIE & Series 7, and National Real Estate Licensing Exam using 192 active-recall flashcards covering GAAP, Audit, Tax, Fixed Income, Options, and Property Law.

Quick Access: Browse All CPA Flashcard Sets on Flashcards World — 6 complete progressive decks (192 verified flashcards) organized across Basic, Intermediate, and Advanced mastery tiers.

1. Complete 6-Deck Progressive Curriculum Matrix (192 Flashcards)

Module Mastery Level Curated Flashcard Deck Cards Direct Study Link
Module 1 Basic CPA Exam (FAR & AUD) — US GAAP vs IFRS, Revenue Recognition (ASC 606), Leases, Bonds & Audit Opinions 32 Cards Practice Deck →
Module 2 Basic CPA Exam (REG & TCP) — Individual & Corporate Federal Taxation, Property Basis, S-Corps, Partnerships & Business Law 32 Cards Practice Deck →
Module 3 Intermediate CFA Level 1 — Ethical Standards, Quantitative Methods, Fixed Income Duration/Convexity & Derivatives 32 Cards Practice Deck →
Module 4 Intermediate CFA Level 1 — Equity Valuation, Financial Reporting Analysis, Portfolio Management (CAPM, Sharpe) & Alternative Investments 32 Cards Practice Deck →
Module 5 Advanced FINRA SIE & Series 7 Exam — Equity/Debt Securities, Municipal Bonds, Options Strategies (Straddles/Spreads) & SEC/FINRA Rules 32 Cards Practice Deck →
Module 6 Advanced Real Estate License Exam — Estates & Interests, Deeds, Title, Liens, Encumbrances, Fair Housing, Agency & Real Estate Math 32 Cards Practice Deck →

2. Module-by-Module Syllabus & Sample Active-Recall Flashcards

Each of the 6 modules below is engineered using atomic retrieval prompts: every card isolates a single high-yield rule, diagnostic criterion, statutory article, deadline, or clinical mechanism.

Module 1 (BASIC): CPA Exam (FAR & AUD) — US GAAP vs IFRS, Revenue Recognition (ASC 606), Leases, Bonds & Audit Opinions

Deck Overview: Comprehensive CPA FAR and AUD exam mastery covering ASC 606 5-step revenue recognition, ASC 842 operating and finance leases, US GAAP vs. IFRS differences, bond amortizations, subsequent events, audit opinions, PCAOB/AICPA standards, internal control deficiencies, and auditor reporting responsibilities.

# Front (Active Recall Prompt) Back (Verified Exam Answer & Explanation)
1 What are the five sequential steps of the revenue recognition model under ASC 606? 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations; 5. Recognize revenue when (or as) the entity satisfies a performance obligation.
2 Under ASC 606, what criteria determine whether revenue is recognized over time rather than at a point in time? Revenue is recognized over time if any one of three criteria is met: 1. Customer simultaneously receives and consumes benefits as entity performs; 2. Entity's performance creates or enhances an asset customer controls; 3. Entity creates an asset with no alternative use and has an enforceable right to payment for performance completed to date.
3 Under ASC 606, how does an entity determine whether it is acting as a Principal or an Agent, and how does this affect revenue reporting? An entity is a Principal if it controls the promised good/service before transfer, recognizing gross revenue and related expenses. It is an Agent if its obligation is to arrange for another party to provide the goods/services, recognizing only the net fee or commission retained.
4 How does the 'variable consideration constraint' work under ASC 606? Variable consideration (e.g., discounts, rebates, performance bonuses) is included in the transaction price only to the extent that it is probable that a significant reversal in the cumulative revenue recognized will not occur when the uncertainty is subsequently resolved.
5 What is the accounting distinction between a Contract Asset and a Receivable under ASC 606? A Receivable represents an unconditional right to consideration, where only the passage of time is required before payment is due. A Contract Asset represents an entity's right to consideration in exchange for goods/services transferred when that right is conditioned on something other than the passage of time (e.g., satisfying another performance obligation).
6 Under ASC 842, what are the five classification criteria that require a lessee to classify a lease as a Finance Lease? A lease is a finance lease if it meets ANY of the following: 1. Transfer of ownership at lease end; 2. Purchase option reasonably certain of exercise; 3. Lease term is >= 75% of the asset's remaining economic life; 4. Present value of lease payments is >= 90% of asset fair value; 5. Asset is so specialized it has no alternative use to the lessor.

Module 2 (BASIC): CPA Exam (REG & TCP) — Individual & Corporate Federal Taxation, Property Basis, S-Corps, Partnerships & Business Law

Deck Overview: Comprehensive CPA REG and TCP exam mastery covering gross income inclusions/exclusions, above-the-line and itemized deductions, Section 1231/1245/1250 recaptures, like-kind exchanges, C-corp formations and distributions, S-corp basis and BIG tax, partnership inside vs outside basis, UCC Article 2, agency law, and bankruptcy.

# Front (Active Recall Prompt) Back (Verified Exam Answer & Explanation)
1 Which items are explicitly excluded from Gross Income under federal income tax law? Gifts and inheritances (IRC §102), life insurance proceeds paid by reason of death (IRC §101), municipal bond interest (IRC §103), compensatory damages for physical personal injury or sickness (IRC §104), and employer-provided health insurance premiums.
2 Contrast Above-the-Line Deductions (Adjustments to Income) with Itemized Deductions on Form 1040. Above-the-line deductions (e.g., educator expenses, student loan interest, HSA contributions, self-employed health insurance, SEP/SIMPLE contributions) reduce Gross Income to arrive at Adjusted Gross Income (AGI). Itemized deductions (Schedule A: medical expenses > 7.5% AGI, SALT capped at $10k, mortgage interest, charitable donations) are subtracted from AGI only if they exceed the Standard Deduction.
3 What are the core parameters of the Section 199A Qualified Business Income (QBI) Deduction for pass-through entities? Eligible non-corporate taxpayers may deduct up to 20% of Qualified Business Income from sole proprietorships, partnerships, and S-corps. For taxable income above statutory phase-in thresholds, the deduction is limited by W-2 wages paid and the unadjusted basis of qualified property (UBIA), and is phased out entirely for Specified Service Trades or Businesses (SSTBs).
4 What are the annual deduction limits and carryover rules for net capital losses realized by individual taxpayers? Individual taxpayers can deduct a maximum of $3,000 ($1,500 married filing separately) of net capital losses against ordinary income per tax year. Unused net capital losses carry forward indefinitely to future tax years, retaining their original short-term or long-term character.
5 How does the Wash Sale Rule (IRC §1091) operate when an investor sells stock at a loss? If a taxpayer sells stock or securities at a loss and acquires substantially identical stock or an option to acquire it within 30 days before or 30 days after the sale (a 61-day window), the loss is disallowed. The disallowed loss is added to the tax basis of the newly acquired replacement shares, preserving the tax benefit.
6 What property qualifies for Section 1031 Like-Kind Exchange treatment, and when is gain recognized? Only real property held for productive use in a trade or business or for investment qualifies under IRC §1031 (personal property and inventory do not qualify). Realized gain is recognized only to the extent of boot received (cash, non-like-kind property, or net mortgage relief).

Module 3 (INTERMEDIATE): CFA Level 1 — Ethical Standards, Quantitative Methods, Fixed Income Duration/Convexity & Derivatives

Deck Overview: High-yield CFA Level 1 exam mastery covering the CFA Institute Code of Ethics and Standards of Professional Conduct (I–VII), quantitative methods (hypothesis testing, CLT, Bayes' rule), fixed income valuation, Macaulay/Modified/Effective duration, convexity, and derivative pricing (forwards, swaps, put-call parity).

# Front (Active Recall Prompt) Back (Verified Exam Answer & Explanation)
1 Under CFA Standard I(A) Knowledge of the Law, what must a member do if local law conflicts with the CFA Institute Code and Standards? The member must adhere to the stricter law, rule, or regulation. When a member has reasonable grounds to believe an employer or client is engaged in illegal or unethical activities, the member must dissociate from the activity and urge the firm to halt it.
2 Under CFA Standard II(A) Material Nonpublic Information, what is the 'Mosaic Theory'? The Mosaic Theory states that an analyst does not violate Standard II(A) by reaching an investment conclusion and making recommendations based on combining nonmaterial nonpublic information with public material information, even if that conclusion would have been material on its own.
3 Under CFA Standard III(B) Fair Dealing, what does the standard require regarding trade allocations and client recommendations? Members must deal fairly and objectively with all clients when disseminating recommendations, making changes in recommendations, and taking investment actions. Allocations must be simultaneous, fair, and based on pre-established trade allocation procedures; personal accounts and family accounts cannot receive priority over client accounts.
4 Under CFA Standard IV(A) Loyalty to Employers, can an employee make preparations to start a competing firm while still employed? An employee may make preparatory arrangements to establish a competing enterprise (e.g., filing corporate paperwork), provided those preparations do not conflict with the employer's business or violate duty of loyalty. However, soliciting the employer's clients or using proprietary materials prior to termination is strictly prohibited.
5 What are the requirements under CFA Standard V(C) Record Retention regarding research and investment recommendations? Members must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and all other investment-related communications with clients. In the absence of regulatory guidance, the CFA Institute recommends retaining records for a minimum of seven years.
6 Under CFA Standard VI(B) Priority of Transactions, what is the strict order of priority for executing investment transactions? 1. Client transactions have first priority; 2. Employer transactions have second priority; 3. Personal transactions (and transactions for beneficial accounts) must be executed last. Front-running client or employer orders is a direct violation.

Module 4 (INTERMEDIATE): CFA Level 1 — Equity Valuation, Financial Reporting Analysis, Portfolio Management (CAPM, Sharpe) & Alternative Investments

Deck Overview: High-yield CFA Level 1 mastery covering Equity Valuation (DDM, DCF, P/E, EV/EBITDA), Financial Statement Analysis (LIFO/FIFO, deferred taxes, 5-step DuPont decomposition), Portfolio Management (CAL, SML, CAPM, Sharpe, Treynor, IPS), and Alternative Investments (PE waterfalls, real estate cap rates, commodities contango).

# Front (Active Recall Prompt) Back (Verified Exam Answer & Explanation)
1 State the Gordon Growth Model (Constant Growth DDM) formula and its core underlying assumptions. P0 = D1 / (r - g) = [D0 * (1 + g)] / (r - g), where D1 is next year's expected dividend, r is required rate of return on equity, and g is constant dividend growth rate. Key assumptions: dividend growth rate g is constant into perpetuity, r > g, and firm payout policy is stable.
2 How is the Sustainable Growth Rate (g) calculated, and how do retention rate and ROE impact it? g = Retention Rate (b) * Return on Equity (ROE), where Retention Rate b = 1 - Dividend Payout Ratio = 1 - (DPS / EPS). Higher ROE or higher earnings retention increases the sustainable internal growth rate without requiring external equity financing.
3 How do you calculate Free Cash Flow to Firm (FCFF) starting from Net Income, and what discount rate must be applied? FCFF = Net Income + Non-Cash Charges (NCC, e.g. Depr) + [Interest Expense * (1 - Tax Rate)] - Fixed Capital Investment (FCInv) - Working Capital Investment (WCInv). FCFF represents cash flow available to all capital providers and must be discounted at the Weighted Average Cost of Capital (WACC).
4 How do you calculate Free Cash Flow to Equity (FCFE) starting from FCFF, and what discount rate must be applied? FCFE = FCFF - [Interest Expense * (1 - Tax Rate)] + Net Borrowing (debt issued minus debt repaid). FCFE represents cash flow available solely to common equity shareholders and must be discounted at the required return on equity (Cost of Equity, r_e).
5 What is the formula for the Justified Leading Price-to-Earnings (P/E) ratio derived from the Gordon Growth Model? Justified Leading P/E = P0 / E1 = (1 - b) / (r - g), where (1 - b) is the dividend payout ratio, r is required return, and g is sustainable growth rate. Justified Trailing P/E = P0 / E0 = [(1 - b) * (1 + g)] / (r - g).
6 How is Enterprise Value (EV) calculated, and why is EV/EBITDA often preferred over P/E for comparing companies? EV = Market Value of Common Equity + Market Value of Preferred Equity + Market Value of Total Debt - Cash and Cash Equivalents. EV/EBITDA is capital-structure-neutral because it compares total enterprise value to operating cash flow before interest, taxes, and non-cash depreciation, facilitating comparison across firms with differing leverage or tax rates.

Module 5 (ADVANCED): FINRA SIE & Series 7 Exam — Equity/Debt Securities, Municipal Bonds, Options Strategies (Straddles/Spreads) & SEC/FINRA Rules

Deck Overview: High-yield FINRA SIE and General Securities Representative (Series 7) exam mastery covering equities, fixed income, municipal bonds, options strategies (covered calls, spreads, straddles), margin calculations (Reg T, SMA), SEC Rules 144/144A/Reg D, and FINRA suitability/AML regulations.

# Front (Active Recall Prompt) Back (Verified Exam Answer & Explanation)
1 Compare Common Stock Preemptive Rights and Warrants across expiration and exercise price relative to market price. Rights: short-term (typically 30-45 days), issued to existing shareholders below current market price (subscription price < CMP) to prevent ownership dilution under preemptive rights. Warrants: long-term (typically 2-10 years), issued above current market price (exercise price > CMP) as a 'sweetener' attached to bonds or preferred stock.
2 What are Cumulative Preferred Stock, Participating Preferred Stock, and Callable Preferred Stock? Cumulative: all skipped or omitted past dividends (dividends in arrears) plus current dividend must be fully paid before common shareholders receive any dividends. Participating: can receive an additional dividend beyond the stated fixed percentage if corporate earnings exceed a threshold. Callable: issuer can redeem shares at a pre-set call price, usually at a slight premium, typically when interest rates fall.
3 Compare US Treasury Bills, Treasury Notes, and Treasury Bonds regarding maturity, interest payment, and quotation. T-Bills: maturities <= 1 year (4, 8, 13, 17, 26, 52 weeks), zero-coupon issued at discount, quoted on annualized discount yield basis. T-Notes: 2 to 10 year maturities, pay semiannual fixed coupons, quoted in 32nds of a point. T-Bonds: 20 to 30 year maturities, pay semiannual fixed coupons, quoted in 32nds of a point.
4 What are Treasury Inflation-Protected Securities (TIPS), and how do they adjust for inflation? TIPS pay a fixed semiannual coupon rate applied to an inflation-adjusted principal. The principal value is adjusted semiannually based on changes in the Consumer Price Index (CPI). If inflation rises, principal increases, boosting dollar coupon payments. At maturity, the investor receives the greater of the original face value or the inflation-adjusted principal.
5 Distinguish between General Obligation (GO) Municipal Bonds and Municipal Revenue Bonds. GO Bonds: backed by the full faith, credit, and taxing power of the municipality (ad valorem property taxes for local governments; income/sales taxes for states); require voter approval in a referendum and are subject to statutory debt limits. Revenue Bonds: backed solely by user fees/revenues generated by a specific enterprise facility (toll roads, airports, hospitals); do not require voter approval and are not subject to statutory debt limits.
6 In a municipal revenue bond indenture, distinguish between a Gross Revenue Pledge and a Net Revenue Pledge. Gross Revenue Pledge: Debt Service (principal and interest) is paid first from gross project revenues before any operation and maintenance expenses are paid. Net Revenue Pledge: Operation and Maintenance (O&M) expenses are paid first from gross revenues, and debt service is paid from the remaining net revenues (the more common structure).

Module 6 (ADVANCED): Real Estate License Exam — Estates & Interests, Deeds, Title, Liens, Encumbrances, Fair Housing, Agency & Real Estate Math

Deck Overview: Comprehensive real estate salesperson and broker licensing exam mastery covering freehold and leasehold estates, deeds, title insurance, voluntary/involuntary liens, encumbrances, Fair Housing laws, agency fiduciary duties (OLD CAR), TILA/RESPA, and essential real estate math.

# Front (Active Recall Prompt) Back (Verified Exam Answer & Explanation)
1 Contrast Fee Simple Absolute with Fee Simple Defeasible (Determinable vs. Condition Subsequent). Fee Simple Absolute: highest, most complete estate in real property; infinite duration, freely transferable, unconditional. Fee Simple Determinable: automatically ends if a specified condition is violated, reverting immediately to grantor ('so long as' / 'while'). Fee Simple Subject to Condition Subsequent: grantor has right of re-entry upon condition breach, but termination requires legal action ('on condition that').
2 What is an Ordinary Life Estate versus an Estate Pur Autre Vie, and what are Reversion and Remainder? Ordinary Life Estate: duration measured by the life of the life tenant. Pur Autre Vie: duration measured by the life of a third person. Reversion: ownership reverts back to the original grantor upon the life tenant's death. Remainder: ownership passes to a designated third party (remainderman) upon the life tenant's death.
3 Compare Tenancy in Common and Joint Tenancy across survivorship, unities, and inheritance. Tenancy in Common: owners hold undivided interests, no right of survivorship; interests can be unequal and pass to heirs via will or probate. Joint Tenancy: requires the Four Unities (PITT: Possession, Interest, Time, Title); includes Right of Survivorship (surviving joint tenants automatically absorb a deceased tenant's share; cannot be willed).
4 What are the four primary types of Leasehold Estates? 1. Estate for Years: definite beginning and ending date, terminates automatically without notice; 2. Periodic Tenancy: renews automatically for recurring periods (month-to-month) until proper notice is given; 3. Tenancy at Will: indefinite duration, terminable by either party at any time; 4. Tenancy at Sufferance: tenant wrongfully remains in possession after lease expires (holdover tenant).
5 What are the essential legal requirements for a Deed to be valid and convey title to real estate? 1. Competent grantor (legal age, sound mind); 2. Identifiable grantee; 3. Consideration clause; 4. Granting clause (words of conveyance); 5. Legal description of property; 6. Signature of grantor; 7. Delivery and acceptance by grantee during grantor's lifetime. (Recording is not required for deed validity, but is required to provide constructive notice).
6 Compare General Warranty Deed, Special Warranty Deed, and Quitclaim Deed regarding grantor warranties. General Warranty Deed: provides broadest protection; grantor warrants title against all defects, whenever created (prior to and during grantor's ownership). Special Warranty Deed: grantor warrants only against defects and encumbrances arising during grantor's period of ownership. Quitclaim Deed: conveys whatever interest the grantor has with ZERO warranties or covenants of title.

3. 8-Week Spaced Repetition & Active Recall Study Schedule

To achieve >90% long-term retention before exam day, follow this structured 8-week interleaving schedule across all 6 decks (192 core cards + your personal error-log cards):

Phase Target Decks Daily New Cards Daily SRS Reviews Exam Application Protocol
Weeks 1–2 (Foundation) Module 1 & Module 2 (Basic) 16 cards/day 25–45 reviews Master core definitions, foundational statutes/physiology, and primary classifications.
Weeks 3–4 (Intermediate Application) Module 3 & Module 4 (Intermediate) 16 cards/day 50–85 reviews Interleave Basic & Intermediate decks; drill multi-step clinical vignettes or statutory exceptions.
Weeks 5–6 (Advanced Mastery) Module 5 & Module 6 (Advanced) 16 cards/day 85–120 reviews Focus on high-difficulty differentials, numerical deadlines, contraindications, and edge-case traps.
Weeks 7–8 (Final Consolidation) All 6 CPA Decks (Interleaved) 0 new cards 100–140 reviews Full timed mock blocks + rapid spaced-repetition review of flagged/missed cards.

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