How Many Questions Are on the FAR CPA Exam?

The Financial Accounting and Reporting (FAR) section is a core component of the Uniform CPA Examination, assessing a candidate’s understanding of accounting and reporting frameworks. This section covers standards set by various bodies, including the Financial Accounting Standards Board (FASB), the U.S. Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), and the Governmental Accounting Standards Board (GASB). It evaluates proficiency in financial statement preparation, analysis, and transaction reporting for businesses, not-for-profit organizations, and state and local governments. Passing FAR is a requirement for all CPA candidates seeking licensure.

FAR Exam Content and Format

The FAR CPA Exam is a four-hour examination composed of two primary question types: Multiple-Choice Questions (MCQs) and Task-Based Simulations (TBSs). The exam includes 50 MCQs and 7 TBSs. These questions are distributed across five testlets.

The structure begins with two testlets dedicated to MCQs, each containing 25 questions. Following these, there is a 15-minute break that does not count towards the total exam time. The remaining three testlets consist entirely of TBSs, with one testlet having two simulations, another with three, and the final one with two.

Question Weighting and Scoring

The FAR exam is scored on a scale from 0 to 99, with a minimum score of 75 required to pass. This score is not a direct percentage of correct answers, nor is it curved. Instead, it is a scaled score that adjusts for the varying difficulty levels across different exam versions, ensuring fairness for all test-takers.

Each question type accounts for 50% of the candidate’s total weighted score on the FAR exam. Harder questions carry more weight than easier ones, and partial credit can be earned on Task-Based Simulations, as they often involve multiple steps or questions within a single scenario.

Time Management During the Exam

Effective time management is important for completing the FAR exam within the four-hour limit. Since there are no individual time limits for each testlet, candidates must allocate their time strategically across the MCQs and TBSs. A common strategy suggests aiming to spend approximately 1.5 to 2 minutes per MCQ. This allows for efficient completion of the two MCQ testlets.

For the Task-Based Simulations, which often involve complex calculations and analysis, allocate around 20 minutes per simulation. This pacing provides a buffer to review flagged questions or address more challenging problems that may require additional thought. Practicing with timed mock exams can help develop the necessary speed and accuracy to manage the exam effectively.