Accounting, CPA, CPA Test, FAR

CPA FAR Exam in 2024: A Comprehensive Overview

The Certified Public Accountant (CPA) Financial Accounting and Reporting (FAR) Exam is a crucial step for individuals looking to become licensed CPAs. As of 2024, the FAR Exam continues to test candidates’ knowledge and skills in various financial accounting and reporting topics. In this article, we will delve into what the FAR Exam entails and discuss the number of Multiple-Choice Questions (MCQs) and Task-Based Simulations (TBSs) candidates can expect.

Overview of the CPA FAR Exam

The FAR Exam is one of four sections of the Uniform CPA Examination, which is administered by the American Institute of Certified Public Accountants (AICPA). This section focuses on assessing candidates’ understanding of financial accounting and reporting topics based on Generally Accepted Accounting Principles (GAAP) in the United States.The exam covers a wide range of topics, including financial statement accounts, governmental accounting, not-for-profit accounting, and more. Candidates are expected to demonstrate their knowledge of accounting principles, financial reporting, and analysis. The exam also tests candidates’ ability to apply their knowledge to real-world scenarios.

CPA FAR Exam Structure

The FAR Exam consists of two types of questions: Multiple-Choice Questions (MCQs) and Task-Based Simulations (TBSs).

Multiple-Choice Questions (MCQs)

MCQs make up the majority of the FAR Exam. These questions assess candidates’ understanding of various accounting concepts and their ability to apply them to different scenarios. Candidates are presented with four possible answer choices, and they must select the most appropriate one.In the FAR Exam, candidates can expect to encounter around 66 MCQs. These questions are further divided into two testlets, with each testlet containing approximately 33 questions. The difficulty level of the MCQs may vary, with some being more straightforward and others requiring more in-depth analysis.

Task-Based Simulations (TBSs)

TBSs are designed to evaluate candidates’ higher-order thinking skills and their ability to apply accounting concepts in practical scenarios. These simulations require candidates to perform tasks similar to those performed by practicing CPAs.In the FAR Exam, candidates can expect to encounter around eight TBSs. These simulations may involve tasks such as preparing financial statements, analyzing financial data, or making accounting entries. Candidates are required to input their answers directly into the exam software, and their responses are graded based on the accuracy and completeness of their work.

Preparing for the CPA FAR Exam

Given the comprehensive nature of the FAR Exam, it is essential for candidates to allocate sufficient time for preparation. Here are a few tips to help you prepare effectively:
  1. Create a study plan: Develop a study schedule that allows you to cover all the necessary topics and allocate sufficient time for practice.
  2. Understand the exam blueprint: Familiarize yourself with the content and weightage of each topic in the FAR Exam. This will help you prioritize your study efforts.
  3. Utilize study materials: Invest in reliable study materials, such as textbooks, review courses, and practice exams, to enhance your understanding of the exam content.
  4. Practice time management: Since the FAR Exam is time-limited, practice answering questions within the allocated time to improve your efficiency.
  5. Review and analyze: After completing practice questions and simulations, review your answers and identify areas where you need improvement. Focus on strengthening your weaker areas.
By following these tips and dedicating sufficient time and effort to your preparation, you can increase your chances of success in the CPA FAR Exam.


The CPA FAR Exam in 2024 continues to assess candidates’ knowledge and skills in financial accounting and reporting. With approximately 66 MCQs and eight TBSs, candidates must thoroughly prepare and demonstrate their understanding and application of accounting principles. By utilizing effective study strategies and investing in reliable study materials, candidates can increase their chances of achieving success in the FAR Exam and taking a significant step towards becoming a licensed CPA.

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