Description

CPA Financial Accounting and Reporting FAR section Exam Test Bank

The Financial Accounting and Reporting (FAR) section of the CPA Exam is a test of endurance and commitment. FAR is acknowledged as the most comprehensive section of the CPA Exam. Many consider FAR the longest and most difficult section. The successful CPA candidate will have to put in the time necessary to understand the material.

This section requires CPA candidates to have a solid grasp of US GAAP. That means the CPA candidate must have a strong knowledge of concepts and standards for financial statements. The test also demands that candidates understand typical items in financial statements as well as specific types of transactions and events.

Knowledge also is required of accounting and reporting for governmental and nongovernmental entities and not-for-profit organizations. CPA candidates will be required to demonstrate the skills needed to apply the financial reporting knowledge required of CPAs.

It’s generally recommended that CPA candidates take FAR first before any of the other three CPA Exam sections. Here’s why: The long study time that is necessary for the Financial Accounting and Reporting section does not count against your 18-month window if you take this section first. Take as much time as you need to study before you set the clock ticking on the 18-month window.

Take Financial Accounting and Reporting first because this is considered the most difficult section. The other sections will seem easier by comparison. FAR is the only section with material that overlaps the other three. You are preparing for the other three sections when you study for Financial Accounting and Reporting. You set a standard for studying the other three sections by concentrating on FAR first.

The FAR Exam is four hours long. This section consists of 66 Multiple Choice Questions (MCQs) and eight Task-Based Simulations (TBSs). You are not required to use all four hours available to take the test.