Core section study guide

FAR CPA Exam Study Guide: Format, Topics, and Study Plan

Learn financial reporting concepts, connect transactions to statements, and build your study plan.

Quick answer

Financial Accounting and Reporting is a required Core section. It tests whether you can apply reporting frameworks to accounts and transactions, then carry adjustments through the financial statements. Treat the content-area ranges as allocation guidance, not a prediction of the exact questions in your test form. Use this guide to understand the exam, plan what to learn, and find explanations for each FAR topic.

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FAR format and score weight

FAR is a 4-hour Core section. Its two MCQ testlets contain 25 and 25 questions. Its three TBS testlets contain 2, 3, 2 tasks. The testlets total 50 MCQs and 7 TBSs.

Section type

Core

Testing time

4 hours

Multiple-choice

50 MCQs · 50%

Simulations

7 TBSs · 50%

Current FAR content areas

Use these ranges to allocate coverage, then adjust for your own practice results. The ranges do not predict the exact number of questions or tasks on an individual exam.

Area	Official content area	Score allocation
I	Financial Reporting	30-40%
II	Select Balance Sheet Accounts	30-40%
III	Select Transactions	25-35%

Official exam sources

Blueprint tasks are representative, not exhaustive. The number of listed tasks does not establish content weight or predict the exact questions a candidate will receive.

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Your FAR study sequence

This is CPAPass study guidance, not an official timetable. Adjust the time you spend at each stage to your starting knowledge, schedule, and understanding of the material.

Stage 1 of 5

Reporting foundations

Start with videos and lectures on the reporting framework and financial statements. Use flashcards to reinforce account classifications, recognition, and measurement.

What to produce: A map connecting the major accounts to the statements and the rules used to measure them.
Move on when: You can explain how a transaction affects the statements before calculating the amount.

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1. Reporting foundations

Start with videos and lectures on the reporting framework and financial statements. Use flashcards to reinforce account classifications, recognition, and measurement.

What to produce: A map connecting the major accounts to the statements and the rules used to measure them.

Move on when: You can explain how a transaction affects the statements before calculating the amount.

2. Accounts and transactions

Study revenue, leases, debt, equity, and income taxes. Follow worked examples from the underlying event through the journal entry to presentation.

What to produce: A set of annotated entries showing the rule, calculation, and statement effect.

Move on when: You can explain each debit and credit and distinguish current effects from deferred effects.

3. Reporting across entities

Learn consolidation, investment accounting, not-for-profit reporting, and government accounting foundations. Compare the reporting context before applying a familiar rule.

What to produce: Comparison notes and a consolidation worksheet with the purpose of each adjustment.

Move on when: You can explain why an adjustment or presentation changes with the reporting entity.

4. Documents and adjustments

Work through lessons that connect source documents, supporting schedules, adjustments, and disclosures. Trace the entire reporting process before attempting it independently.

What to produce: A reconciled worksheet connecting the evidence to the adjustment and financial statement.

Move on when: You can identify the relevant exhibit and explain how the adjustment reaches the statements.

5. Timed practice and review

Bring the topics together with timed MCQs and simulations. Return to the relevant lesson and flashcards when a question reveals a gap in the rule or calculation.

What to produce: Review notes separating recognition, measurement, classification, and timing issues.

Move on when: You can solve a changed version of a problem and explain the reporting result.

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Explore FAR topic guides

Find the explanation you need for your next study session.

Statements and foundations

Connect accounting records to the financial statements.

Journal entries Cash-flow statement methods

View 12 more guides

Trial balance and adjustments General and subsidiary ledgers Debits and credits Accrued payroll Dividends Prepaid expenses Discontinued operations Other comprehensive income Changes in equity Subsequent events Special purpose frameworks Accounting principles vs. estimates

Assets and measurement

Understand recognition, valuation, and changes in asset balances.

Expected credit losses Inventory valuation

View 18 more guides

LIFO vs. FIFO Receivable allowances and write-offs Freight-in vs. freight-out Bank reconciliation Petty cash replenishment Inventory adjustments Gross profit inventory estimate Fixed assets and depreciation Lump-sum purchase allocation Receivable factoring Assets held for sale Capitalized interest Cash equivalents Notes receivable Fair value hierarchy Debt investment classifications Long-lived asset impairment Intangible assets

Liabilities and equity

Follow financing transactions through measurement and reporting.

Lease accounting Debt extinguishment

View 7 more guides

Imputed interest Asset retirement obligations Basic vs. diluted EPS Treasury stock Debt issuance costs Purchase commitment loss Loss and gain contingencies

Entities and reporting contexts

Compare reporting across investments and different entities.

Consolidated financial statements Not-for-profit accounting

View 4 more guides

Consolidation adjustments Equity-method investments Noncontrolling interests Foreign currency transactions

FAR study FAQs

Where should I start if my financial accounting is rusty?

Begin with the reporting foundations stage. Use lessons to reconnect accounts, journal entries, and financial statements, then build annotated examples. Move into more complex transactions when you can explain the basic statement effects without relying on memorized entries.

How much time should I give each study stage?

Adjust the stages to your starting knowledge, available study time, and understanding of the material. Use each stage's output and move-on check to decide what to revisit. A fixed number of weeks is not a guarantee of readiness.

Can I try FAR practice before creating an account?

Yes. The public FAR practice questions and explanations are available without registration. The MCQ and TBS PDF samples are requested separately by email. Create a free CPAPass account to learn and prepare with videos, lectures, flashcards, and practice questions in one platform.

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