Updated:June 17, 2018
Bryce Welker, CPA

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. Starting in April of 2017, there will be significant changes to the FAR section. The FAR exam now has 66 multiple choice questions instead of the previous 90 with decrease from 60% weighting to 50%.

The remaining 40% comes from 8-9 Task-Based Simulations—otherwise known as SIMS—instead of 7 from previous year, 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

1. 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

2. Calculation and Transaction Identification

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

3. 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

4. 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

5. 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


FAR Exam Practice Questions

The best way to supplement your FAR exam studies and ensure you don’t fail is to do a ton of practice questions.  To get access to over 1,000 multiple choice questions covering all topics on on the FAR exam, check out the Crush FAR Test Bank!



Other CPA Exam Sections


Audit CPA Exam


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