Financial Accounting and Reporting (FAR)
The structure of the CPA Exam divides the exam into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR)and Regulation (REG).
Financial Accounting and Reporting (FAR) covers the skill set requisite to apply knowledge of generally accepted accounting principles (GAAP) as related to the operation of government branches, business enterprises, and not-for-profit organizations. Topics covered during the test:
- Items which are often found on financial statements
- Types of specific events and transactions
- Standards and concepts for financial statements
- Accounting and reporting for not-for-profit and nongovernmental agencies and
- Accounting and reporting for government agencies
There will be major changes to the exam from 2010 to 2011. These are:
The types of questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications.
Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.
For FAR, simulations will double from 20% of your score in 2010 to 40% of your score in 2011.
In 2010, about 1/3 of your simulation score is based on your writing ability.
For 2010, FAR has 90 MCQs; in 2011, FAR will retain its 90 MCQs.
Part 2010 2011
FAR 90 MCQs 90 MCQs
FAR 2 long simulations 7 shorter Task-Based Simulations
& research question (new format)
FAR 2 written communications 0 written communications
FAR 4 hours to complete 4 hours to complete
When you sit for the exam, you are responsible for knowing how to function in the computer-based testing environment and how to handle each of these types of questions. A program like CPAexcel will familiarize you with both the format of the exam and the types of questions. If you do not how the test functions in terms of format and the questions, this may adversely affect your score.
Changes in the Weighting of the Exam from 2010 to 2011
Part Questions 2010 2011
FAR MCQs 70% 60%
Simulations 20% 40%
Written Comm. 10% N/A
For more on the contents of each section, please refer to the Uniform CPA Examination Content Specifications Outline which details the subjects on the exam.
Structure of the CPA Exam: Regulation (REG)
The structure of the CPA Exam divides the exam into four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR)and Regulation (REG).
Regulation (REG) covers the skill set requisite to apply the knowledge of business law, ethics, federal taxation, professional and legal responsibilities. Topics covered during the test:
- Principles and application of business law
- Professional responsibility and ethics
- What do you need to know about federal taxation of property transactions?
- What do you need to know about federal taxation of entities?
- What do you need to know about federal taxation of individuals?
- What do you need to know about accounting issues and federal tax procedures?
There will be major changes to the exam from 2010 to 2011. These are:
The types of questions on the Exam include multiple choice questions (MCQ), simulations (which are condensations of case studies) and written communications.
Simulations are condensed case studies about which you are asked specific questions which showcase how you would apply your skill set to solve a “real-life” situation. Your answers allow you to demonstrate your writing skills because about 30% of your score in 2010 depends on your ability to write out your answers, not simply select option a, b, c or d.
For REG, simulations will double from 20% of your score in 2010 to 40% of your score in 2011.
In 2010, about 1/3 of your simulation score is based on your writing ability.
For 2010, REG has 90 MCQs; in 2011, REG will only have 72 MCQs.
Part 2010 2011
REG 90 MCQs 72 MCQs
REG 2 long simulations 6 shorter Task-Based Simulations
& research question (new format)
REG 2 written communications 0 written communications
REG 3 hours to complete 3 hours to complete
When you sit for the exam, you are responsible for knowing how to function in the computer-based testing environment and how to handle each of these types of questions. A program like CPAexcel will familiarize you with both the format of the exam and the types of questions. If you do not how the test functions in terms of format and the questions, this may adversely affect your score.
Changes in the Weighting of the Exam from 2010 to 2011
Part Questions 2010 2011
REG MCQs 70% 60%
Simulations 20% 40%
Written Comm. 10% N/A
For more on the contents of each section, please refer to the Uniform CPA Examination Content Specifications Outline which details the subjects on the exam.
With the massive changes to 2011 CPA Exam looming, it is more important than ever that you pass the first time. Over 87% of CPAexcels students pass the CPA Exam—that is nearly twice the national average! Now is the time to prepare and pass the CPA Exam. CPAexcel has more study tools than any other course—and can help you pass the first time.