FAR CPA Exam SectionThe Far (Financial Accounting and Reporting) section of the CPA Exam encompasses a variety of topics and candidates are expected to show competence in several key areas. The FAR exam is comprised of 3 testlets consisting of 30 multiple choice questions each. This amounts to a total of 90 MCQ which account for 60% of your grade.

The remaining 40% comes from 7 Task-Based Simulations, otherwise known as SIMS, which require you to generate answers on your own rather than choose from a list of possible choices. You are given 4 hours to complete the exam and need to get an overall score of 75% or higher to pass. 

FAR Exam Format

Calculation and Identification of Miscellaneous Items Listed in Financial Statements

  • 27% to 33% of the exam
  • Examples include Receivables, Payables, Liabilities, Bonds, Cash and Marketable Securities, and Revenue Recognition

Calculation and Transaction Identification

  • 27% to 33% of the exam
  • Examples include Extraordinary Items, Contingent Liabilities, Business Combinations and Discontinued Operations

Standards and Concepts regarding Financial Statements

  • 17% to 23% of the exam
  • Examples include Presentation of Financial Statements such as Balance Sheet, Cashflow, P&L and Financial Statement Notes

Accounting and Reporting for Non-Profit and Non-Governmental Organizations

  • 8% to 12% of the exam
  • Examples include 4 Statements and Calculation and Identification of miscellaneous items present in Financial Statements

Accounting and Reporting for Governmental Bodies

  • 8% to 12% of the exam
  • Examples include Budgetary Processes, Concepts of Fund Accounting and Financial Statements comprising Government Entities


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Check out the AICPA webpage to learn more about the material covered in all 4 parts of the CPA Exam.