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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Select Transactions | 25-35% | - Revenue recognition and transaction accounting - Accounting changes and error corrections - Leases and other significant transactions |
| Topic 2: Select Balance Sheet Accounts | 30-40% | - Liabilities, equity transactions and related accounting requirements - Investments and financial instruments - Cash, receivables, inventory, PP&E, and intangible assets |
| Topic 3: Financial Reporting | 30-40% | - General purpose financial reporting for for-profit and non-profit entities - Foundational concepts related to accounting requirements for governmental entities - Preparation and presentation of financial statements, disclosures, and ratios |
AICPA CPA Financial Accounting and Reporting is an official American Institute of Certified Public Accountants (AICPA) certification exam, identified by exam code FAR. Passing earns you the AICPA Certification certification, classified at the Core Section of CPA Exam level. It also connects with CPA Auditing and Attestation (AUD), CPA Taxation and Regulation (REG), CPA Business Analysis and Reporting (BAR), CPA Information Systems and Controls (ISC), CPA Tax Compliance and Planning (TCP), so it can serve as a stepping stone in a wider certification plan. In hiring, certificates work as a quick, quantitative standard, and this one tells employers your skills passed the vendor's own measurement.
AICPA CPA Financial Accounting and Reporting candidates answer 50 multiple-choice questions (MCQs) + 7 task-based simulations (TBSs) questions within 240 minutes. Efficiency under the clock is a trainable skill, not a talent: decide your per-question budget in advance, flag anything that threatens it, and keep moving. Running timed simulations in the BraindumpQuiz test engine until you finish with time to spare is the most reliable way to make exam day feel controlled rather than rushed.
The AICPA CPA Financial Accounting and Reporting exam requires 75 (scaled score on a 0–99 scale) to pass, and official registration costs Varies by jurisdiction (national section fee example ~USD 359 before local fees). Since retakes bill the full Varies by jurisdiction (national section fee example ~USD 359 before local fees) again, the economic argument for thorough preparation writes itself. Let the BraindumpQuiz practice tests be your measuring stick: when your scores hold above the passing line across several consecutive sessions, the exam stops being a financial risk.
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The AICPA CPA Financial Accounting and Reporting syllabus is organized into 3 domains, with the largest being Select Transactions (25-35%), Select Balance Sheet Accounts (30-40%), and Financial Reporting (30-40%). The complete breakdown appears in the topics section above; a clear classification of what the exam tests is the first step toward efficient preparation.
A statement of cash flows for a development stage enterprise:
Correct Answer: C 🗳️
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According to the FASB conceptual framework, which of the following situations violates the concept of
reliability?
Correct Answer: D 🗳️
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An extraordinary gain should be reported as a direct increase to which of the following?
Correct Answer: A 🗳️
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The following costs were incurred by Griff Co., a manufacturer, during 1992:
What amount of these costs should be reported as general and administrative expenses for 1992?
Correct Answer: C 🗳️
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On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with
Quo's president and outside accountants, made changes in accounting policies, corrected several errors
dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List A represents possible clarifications of these
transactions as: a change in accounting principle, a change in accounting estimate, a correction of an
error in previously presented financial statements, or neither an accounting change nor an accounting
error.
During 1993, Quo increased its investment in Worth, Inc. from a 10% interest, purchased in 1992, to 30%,
and acquired a seat on Worth's board of directors. As a result of its increased investment, Quo changed
its method of accounting for investment in Worth, Inc. from the cost method to the equity method.
List A
Correct Answer: B 🗳️
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