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The CPA FAR Exam comprises of 66 multiple-choice questions and nine task-based simulations, covering a diverse range of topics such as accounting and reporting standards, financial statement analysis, and operational transactions. The test is designed to evaluate candidates’ critical thinking and problem-solving skills in realistic scenarios, which accountants may face in their work.
The Financial-Accounting-Reporting section of the CPA Exam is focused on measuring the applicant’s knowledge and understanding of financial accounting and reporting concepts, standards and principles. This section of the exam is divided into three main areas: Financial Reporting, Select Financial Statement Accounts, and State and Local Governments.
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The Certified Public Accountant (CPA) designation is one of the most prestigious and sought-after certifications in the accounting profession. In order to obtain this certification, candidates must pass a series of exams that test their knowledge and skills in various areas of accounting. One of these exams is the Financial-Accounting-Reporting (FAR) section of the CPA exam.
Admission Test Financial-Accounting-Reporting (Certified Public Accountant (Financial Accounting & Reporting)) Certification Exam is an important step in the journey towards becoming a certified public accountant. The FAR section of the exam tests candidates on their knowledge and expertise in financial accounting and reporting, and requires extensive preparation and study. Candidates who successfully pass the exam will have demonstrated their ability to apply accounting principles and standards to real-world scenarios, and will be well-equipped to pursue a career in accounting and finance.
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| Section | Objectives |
|---|---|
| Specialized Accounting Topics | - Pensions and post-employment benefits - Foreign currency transactions - Accounting changes and error corrections |
| Conceptual Framework and Financial Reporting | - FASB conceptual framework - Financial statement presentation - Disclosure requirements |
| Financial Statements and Transactions | - Income statement and comprehensive income - Revenue recognition (ASC 606) - Balance sheet and statement of cash flows |
| Equity, Investments, and Business Combinations | - Business combinations and consolidations - Bonds and debt instruments - Stockholders' equity |
| Assets and Liabilities Accounting | - Fixed assets and intangible assets - Leases (ASC 842) - Liabilities and contingencies - Cash, receivables, and inventory |
| Governmental and Not-for-Profit Accounting | - Not-for-profit financial reporting - Governmental fund accounting |
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