FAR Exam Guide
Financial Accounting and Reporting
Quick Answer
FAR (Financial Accounting and Reporting) has the lowest CPA exam pass rate at 42% and requires 120–150 study hours. It tests three content areas: financial reporting, select balance sheet accounts, and select transactions. [Becker](/reviews/becker) and [Gleim](/reviews/gleim) offer the strongest FAR content.
Tests knowledge and skills related to financial accounting and reporting frameworks, including FASB, U.S. SEC, and AICPA standards for both for-profit and non-profit entities.
Pass Rate Insight: Among the lowest pass rates of all sections. Requires deep understanding of financial statement impacts.
CPA Exam: Continuous Testing Year-Round
The CPA exam is now available year-round with continuous testing. Score releases happen quarterly — plan your study timeline to align with your target testing date.
Build My Study PlanExam Format & Time Management
Exam Structure
Recommended Pacing
Testlet Progression
Content Blueprint
| Area | Content | Weighting |
|---|---|---|
| I | Financial Reporting | 30-40% |
| II | Select Balance Sheet Accounts | 30-40% |
| III | Select Transactions | 25-35% |
Key Topics Tested
- General purpose financial statements for various entity types
- Cash, receivables, inventory, property/plant/equipment
- Investments, intangibles, liabilities, and equity
- Revenue recognition and income taxes
- Fair value measurement and leases
- Business combinations and consolidated statements
- Nonprofit financial statements and basic state/local government concepts
- Accounting changes and contingencies
Study Tips for FAR
- 1Focus on understanding how transactions impact financial statements — you cannot memorize your way through FAR
- 2Allocate more time to complex topics like pensions, leases, and consolidations — Pass with Jack offers targeted FAR topic courses ($15-$50 each) if your main review course isnt clicking on these
- 3Governmental content in FAR is now light — just basic state and local government concepts. The heavier governmental reporting moved to BAR under the 2026 blueprint, so do not over-invest study time here for FAR
- 4Time management: ~2.08 minutes per MCQ, ~18 minutes per TBS
- 5Use practice exams to build stamina for the 4-hour test — Gleim offers the largest question bank (12,000+ MCQs) for extensive FAR drilling
- 6Need extra MCQ volume on a budget? NINJA at $67/month and Meridian (currently free in beta) are the two most affordable ways to add practice reps without committing to another full-priced course
Free · 5 questions · ~90 seconds
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Best Courses for FAR
Top-rated CPA review courses for mastering Financial Accounting and Reporting
Study Resources for FAR
FAR Frequently Asked Questions
Other Exam Sections
Free FAR Study Guide PDF
4-page guide with topic sequences, weekly timeline, and practice tracker for all 120–150 hours of FAR prep.
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