How Many Questions Are on the FAR CPA Exam?
Prepare for the FAR CPA Exam by understanding its precise question count and overall test design. Gain essential insights for success.
The Financial Accounting and Reporting (FAR) section of the Uniform CPA Examination assesses a candidate’s understanding of accounting and reporting frameworks used by various entities, including businesses, governments, and not-for-profit organizations. This section evaluates proficiency in financial statement preparation, analysis, and transaction reporting, covering essential standards from bodies like the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
FAR Exam Structure
The FAR CPA Exam is a four-hour assessment structured into five distinct testlets. Candidates encounter a combination of multiple-choice questions (MCQs) and task-based simulations (TBSs). The exam includes two testlets dedicated to MCQs and three testlets for TBSs.
The FAR exam features 50 multiple-choice questions, divided equally between the first two testlets, with 25 questions each. Candidates then proceed to the task-based simulations. The three TBS testlets contain a total of 7 simulations, typically structured with two in the third testlet, three in the fourth, and two in the fifth.
Understanding Question Formats
The FAR CPA Exam primarily utilizes two question formats to evaluate a candidate’s knowledge and skills. Multiple-choice questions (MCQs) are a common format, presenting a question or scenario followed by several answer options, from which the candidate must select the single best response. These questions typically assess a candidate’s recall of accounting principles, rules, and definitions, as well as their ability to apply these concepts to straightforward situations. MCQs often cover a broad range of topics.
Task-based simulations (TBSs) offer a more practical assessment of a candidate’s abilities, requiring them to apply their knowledge to realistic accounting scenarios. These simulations are designed to mimic real-world tasks that entry-level accountants perform. Candidates might be asked to complete a spreadsheet, make journal entries, prepare financial statement reconciliations, or conduct research within authoritative accounting literature. TBSs provide a flexible format that allows for the evaluation of higher-order skills such as analysis, problem-solving, and professional judgment.
How the FAR Exam is Scored
The scoring methodology for the FAR CPA Exam equally weights the two primary question formats. Both the multiple-choice questions and the task-based simulations each contribute 50% to a candidate’s overall score. This balanced weighting emphasizes the importance of performing well in both conceptual understanding, tested by MCQs, and practical application, assessed through TBSs.
The exam is scored on a scale ranging from 0 to 99, with a minimum score of 75 required to pass. The CPA Exam is not graded on a curve, meaning a candidate’s score is independent of other test-takers’ performances. Individual questions are weighted based on their difficulty, with more challenging questions potentially carrying more value. For task-based simulations, partial credit is awarded, allowing candidates to receive points for correct components within a multi-step problem.