When you’re on your journey to becoming a Certified Public Accountant, there are a series of exams you need to take. One of the most important and perhaps the challenging exams is the FAR. It stands for Financing Accounting and Reporting. The FAR covers major topics like financial statements, financial transactions, GAAP, and reporting for non-profits.
The Financial Accounting and Reporting section of the CPA exam is made up of different sections as well. Here is what the FAR on the CPA exam includes.
- Select Financial Statement Accounts: 35%
- Financial Reporting, Conceptual Framework, and Standard-Setting: 30%
- Select Transactions: 25%
- State and Local Governments: 10%
All of this information can be quite confusing. We can say that out of 100 hours that you’re going to study for the CPA exam a large portion of it will be just for the FAR. Therefore, it is always a good idea to do your studies with practice exams. This helps you see where you’re at with your mission to becoming a CPA.
Below, you can download a practice exam made by CPA Army. It includes the answer to every question along with the explanation. You can also download the practice exam and print out for studying on paper.