Demanding exams and busy schedules collide for most IT professionals, and the Financial-Accounting-Reporting exam is no exception. Test4Cram resolves that collision with 161 verified practice questions for the Admission Test Certified Public Accountant (Financial Accounting & Reporting) exam that respect the time you actually have.
Admission Test Financial-Accounting-Reporting Exam Overview:
| Certification Vendor: | AICPA / NASBA |
|---|---|
| Exam Name: | Financial Accounting and Reporting (FAR) |
| Exam Number: | FAR |
| Exam Price: | $238.15 USD (varies by jurisdiction) |
| Available Languages: | English |
| Related Certifications: | BAR / ISC / TCP (CPA Evolution disciplines) AUD REG |
| Real Exam Qty: | 57 (50 MCQs + 7 Task-Based Simulations) |
| Passing Score: | 75 (scaled score) |
| Certificate Validity Period: | 18 months (to pass all CPA exam sections after first pass) |
| Exam Format: | Task-Based Simulations (TBS), Multiple Choice Questions (MCQs) |
| Exam Duration: | 240 minutes |
| Recommended Training: | Wiley CPA Exam Review Gleim CPA Review Becker CPA Review |
| Exam Registration: | NASBA CPA Candidate Portal AICPA CPA Exam Information Prometric CPA Exam Scheduling |
| Sample Questions: |  |
| Exam Way: | Computer-based testing at authorized Prometric test centers |
| Pre Condition: | No formal prerequisite for exam entry, but candidates must meet state-specific CPA licensure education requirements (typically 120–150 semester hours). |
| Official Syllabus URL: | https://www.aicpa-cima.com/cpa-exam |
Admission Test Financial-Accounting-Reporting Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Financial Statements and Transactions | - Revenue recognition (ASC 606) - Income statement and comprehensive income - Balance sheet and statement of cash flows |
| Topic 2: Conceptual Framework and Financial Reporting | - Financial statement presentation - FASB conceptual framework - Disclosure requirements |
| Topic 3: Assets and Liabilities Accounting | - Cash, receivables, and inventory - Fixed assets and intangible assets - Leases (ASC 842) - Liabilities and contingencies |
| Topic 4: Governmental and Not-for-Profit Accounting | - Not-for-profit financial reporting - Governmental fund accounting |
| Topic 5: Specialized Accounting Topics | - Foreign currency transactions - Pensions and post-employment benefits - Accounting changes and error corrections |
| Topic 6: Equity, Investments, and Business Combinations | - Stockholders' equity - Bonds and debt instruments - Business combinations and consolidations |
Studying for the Admission Test Certified Public Accountant (Financial Accounting & Reporting) Exam: Answers
The Admission Test Certified Public Accountant (Financial Accounting & Reporting) exam requires a score of 75 (scaled score) to pass, and the official registration fee is $238.15 USD (varies by jurisdiction). Because the fee is significant, preparing thoroughly the first time is the practical choice.
Every session in the test engine is scored and broken down, so you see clearly which topics you handle well and which ones keep costing you points. That picture tells you where your remaining study time belongs — a far better guide than rereading everything evenly.
The Admission Test Certified Public Accountant (Financial Accounting & Reporting) exam contains 57 (50 MCQs + 7 Task-Based Simulations) questions, and you will have 240 minutes minutes to complete them. Practicing within the same limits builds the pacing the real exam demands.
No formal prerequisite for exam entry, but candidates must meet state-specific CPA licensure education requirements (typically 120–150 semester hours).
You can confirm the current eligibility requirements on the official Financial-Accounting-Reporting exam page before you register.
This package includes 161 practice questions for the Admission Test Certified Public Accountant (Financial Accounting & Reporting) exam. Every answer is verified by an experienced team of experts, so you can trust what you study.
You can register for the Admission Test Certified Public Accountant (Financial Accounting & Reporting) exam through the official channels:
Yes. Once downloaded, the online test engine keeps running without an internet connection, on Windows, Mac, Android, or iOS. That means practice continues on flights, in waiting rooms, and anywhere else your day takes you — your Financial-Accounting-Reporting preparation never has to pause for a missing signal.
The Admission Test Certified Public Accountant (Financial Accounting & Reporting) practice questions are organized around the official exam objectives. Key topics include:
- Conceptual Framework and Financial Reporting ()
- Assets and Liabilities Accounting ()
- Equity, Investments, and Business Combinations ()
Comparing your practice scores against these topics shows you where the next session should go.
Many candidates combine practice questions with official training. Recommended options include:
Admission Test Certified Public Accountant (Financial Accounting & Reporting) Sample Questions:
Which of the following is a generally accepted accounting principle that illustrates the practice of conservatism during a particular reporting period?
- A. Capitalization of research and development costs.
- B. Accrual of a contingency deemed to be reasonably possible.
- C. Reporting inventory at the lower of cost or market value.
- D. Reporting investments with appreciated market values at market value.
Correct Answer: C 🗳️
On January 1, 1991, Brecon Co. installed cabinets to display its merchandise in customers' stores. Brecon expects to use these cabinets for five years. Brecon's 1991 multi-step income statement should include:
- A. One-fifth of the cabinet costs in cost of goods sold.
- B. All of the cabinet costs in cost of goods sold.
- C. One-fifth of the cabinet costs in selling, general, and administrative expenses.
- D. All of the cabinet costs in selling, general, and administrative expenses.
Correct Answer: C 🗳️
Which of the following should be disclosed in a summary of significant accounting policies?
I. Management's intention to maintain or vary the dividend payout ratio.
II. Criteria for determining which investments are treated as cash equivalents.
III. Composition of the sales order backlog by segment.
- A. I only.
- B. I and III.
- C. II only.
- D. II and III.
Correct Answer: C 🗳️
Reclassification adjustments must be shown in the financial statement that discloses comprehensive income:
- A. To avoid including transactions with shareholders in items of comprehensive income.
- B. To show what portion of comprehensive income is from the realization of current assets.
- C. To show the tax effect of items of comprehensive income.
- D. To avoid double counting in comprehensive income items, which are currently displayed in net income.
Correct Answer: D 🗳️
Hyde Corp. has three manufacturing divisions, each of which has been determined to be a reportable segment. In 1989, Clay division had sales of $3,000,000, which was 25% of Hyde's total sales, and had operating costs of $1,900,000, as reported to the CFO. In 1989, Hyde incurred operating costs of $500,000 that were not directly traceable to any of the divisions. In addition, Hyde incurred corporate interest expense of $300,000 in 1989. In reporting segment information, what amount should be shown as Clay's operating profit for 1989?
- A. $900,000
- B. $875,000
- C. $1,100,000
- D. $975,000
Correct Answer: C 🗳️
