The Financial Accounting and Reporting (FAR) section of the CPA Exam is arguably the most difficult, longest and by far the most comprehensive section of the exam. As laid out in the AICPA Blueprints, FAR requires that CPA candidates have a strong knowledge of US GAAP, including concepts and standards for financial statements, typical items in financial statements, specific types of transactions and events, accounting and reporting for governmental entities, and accounting and reporting for nongovernmental and not-for-profit organizations. CPA candidates should also be able to demonstrate the skills needed to apply the financial reporting knowledge required of CPAs.

The Financial Accounting and Reporting (FAR) section of the CPA Exam is the most comprehensive, and often regarded as the most difficult, section. It covers a wide range of topics, from how to calculate depreciation to which financial statements are required for governmental organizations. Candidates should be able to demonstrate they can recall and apply financial reporting concepts on the FAR CPA Exam and prove they have the knowledge required by CPAs.

To help you get more comfortable with the FAR CPA Exam content, we’ve put together everything you need to know including the exam structure, content, scoring, and a few helpful exam tips.

FAR has two types of questions within the 5 testlets:

These are one sentence to paragraph length questions with four potential answers. Of the total 300 multiple choice questions (MCQs) on the FAR CPA Exam, 12 are pretest questions and do not count toward a candidate’s score.

These are practical questions requiring candidates to type in answers, and may include a research question, journal entries, filling out financial statements, or filling out a form with multiple questions. Of the 8 task-based simulations (TBSs), one is a pretest question and does not count toward a candidate’s score.