CERTIFIED TRADE FINANCE PROFESSIONAL
CTFP EXAM 2026 PRACTICE QUESTIONS AND
ANSWERS
◉ What does the Consistency Principle require? Answer:
Organizations must use consistent accounting methods for
comparability.
◉ What is the Conservatism Principle? Answer: When uncertain,
report lower revenues and higher expenses to avoid overstating
income.
◉ What is the Cost Principle? Answer: Assets are recorded at
historical cost minus depreciation or amortization.
◉ What is the Full Disclosure Principle? Answer: Organizations must
provide enough information for informed decisions.
◉ What does the Going Concern Principle assume? Answer: The
business will continue operating and meet obligations in the
foreseeable future.
, ◉ What is the Matching Principle? Answer: Expenses are recorded
in the same period as related revenues.
◉ What is Materiality in accounting? Answer: Significant items must
be reported separately because they influence decisions.
◉ What does the Periodicity Principle require? Answer: Financial
activities must be divided into standard reporting periods.
◉ What does the Revenue Recognition Principle require? Answer:
Revenue is recognized when earned and realized, not necessarily
when cash is received.
◉ What is Form 10-Q? Answer: A quarterly SEC filing with
unaudited financial statements and management discussion for
investors and analysts.
◉ What is Form 10-K? Answer: An annual SEC filing with audited
financial statements, risks, governance, and executive compensation.
◉ What is Form 20-F? Answer: An annual filing for foreign
companies listed in the U.S.; allows IFRS use.
CTFP EXAM 2026 PRACTICE QUESTIONS AND
ANSWERS
◉ What does the Consistency Principle require? Answer:
Organizations must use consistent accounting methods for
comparability.
◉ What is the Conservatism Principle? Answer: When uncertain,
report lower revenues and higher expenses to avoid overstating
income.
◉ What is the Cost Principle? Answer: Assets are recorded at
historical cost minus depreciation or amortization.
◉ What is the Full Disclosure Principle? Answer: Organizations must
provide enough information for informed decisions.
◉ What does the Going Concern Principle assume? Answer: The
business will continue operating and meet obligations in the
foreseeable future.
, ◉ What is the Matching Principle? Answer: Expenses are recorded
in the same period as related revenues.
◉ What is Materiality in accounting? Answer: Significant items must
be reported separately because they influence decisions.
◉ What does the Periodicity Principle require? Answer: Financial
activities must be divided into standard reporting periods.
◉ What does the Revenue Recognition Principle require? Answer:
Revenue is recognized when earned and realized, not necessarily
when cash is received.
◉ What is Form 10-Q? Answer: A quarterly SEC filing with
unaudited financial statements and management discussion for
investors and analysts.
◉ What is Form 10-K? Answer: An annual SEC filing with audited
financial statements, risks, governance, and executive compensation.
◉ What is Form 20-F? Answer: An annual filing for foreign
companies listed in the U.S.; allows IFRS use.
