US Certified Public Accountant (AICPA Uniform CPA Examination) · Core
CPA FAR Financial Accounting and Reporting: mock exams and practice questions
265 original exam-style questions for CPA FAR Financial Accounting and Reporting, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 265practice questions
- 3syllabus areas
- 4 hoursfull mock, like the real exam
CPA FAR exam format
4 hours, computer-based: 50 multiple-choice questions in two testlets of 25, then 7 task-based simulations in testlets of 2, 3 and 2, with a 15-minute break after the first simulation testlet. Multiple-choice and simulations each count for 50%. AICPA blueprint effective 1 January 2026 (the 2027 blueprint is unchanged for FAR content); US GAAP as at 1 November 2026. The pass mark is 70%.
| Section | Format | Marks |
|---|---|---|
| Section A | 50 four-option multiple-choice questions × 1 mark (two testlets of 25) | 50 |
| Section B | 7 task-based simulations × 7 marks: number entry, option lists, journal-entry grids, a research task and a document review | 49 |
| Total | 99 |
Syllabus areas covered
- I · Financial reporting90 questions
- II · Select balance sheet accounts94 questions
- III · Select transactions81 questions
Try 3 free CPA FAR questions
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Sample question 1 · I · Financial reporting
Which of the following is reported in other comprehensive income, rather than in net income, by a for-profit entity under US GAAP?
- A An unrealized holding loss on equity securities that have a readily determinable fair value
- B A foreign currency transaction loss on a euro-denominated account payable at year-end
- C An unrealized holding gain on debt securities classified as trading securities
- D An unrealized holding gain on debt securities classified as available-for-sale
Show the answer
Answer: D. Other comprehensive income (ASC 220) includes, among other items: unrealized holding gains and losses on available-for-sale debt securities (excluding the credit-loss portion, which is in net income); foreign currency translation adjustments; certain pension and postretirement adjustments; and effective portions of cash flow hedges.
Unrealized gains and losses on equity securities with readily determinable fair values (ASC 321), on trading debt securities (ASC 320) and foreign currency transaction gains and losses (ASC 830-20) are all recognized in net income.
Sample question 2 · II · Select balance sheet accounts
On July 1, 2025, Sutter Bay Printing bought a press for $280,000. It estimated an 8-year useful life and a $20,000 salvage value, and uses the double-declining-balance method, taking depreciation for the months the asset is held in the year of purchase. What depreciation expense should Sutter Bay record for 2026?
- A $52,500
- B $56,875
- C $61,250
- D $70,000
Show the answer
Answer: C. Double-declining-balance rate = 2 / 8 = 25%, applied to carrying amount (salvage is ignored except as a floor).
- 2025: $280,000 x 25% x 6/12 = $35,000
- Carrying amount at January 1, 2026 = $280,000 - $35,000 = $245,000
- 2026: $245,000 x 25% = $61,250
(Allocating each asset-year across calendar years gives the same answer: $70,000 x 6/12 + $52,500 x 6/12 = $61,250.) Carrying amount at the end of 2026, $183,750, is still above salvage.
Sample question 3 · III · Select transactions
Brockhurst Tool Co. made four changes during 2026. Under US GAAP, which ONE of them is applied prospectively, with no adjustment to prior-period statements?
- A A change from the LIFO method to the FIFO method for all of its inventories
- B A change in the group of subsidiaries included in its consolidated financial statements
- C Correction of an arithmetic mistake made in calculating the prior year's depreciation expense
- D A change from double-declining-balance to straight-line depreciation for its existing equipment
Show the answer
Answer: D. ASC 250 sets the treatment for each kind of change:
| Change | Type | Treatment |
|---|---|---|
| DDB to straight-line depreciation | Change in estimate effected by a change in principle | Prospective (current and future periods) |
| LIFO to FIFO | Change in accounting principle | Retrospective application |
| Different subsidiaries consolidated | Change in reporting entity | Retrospective |
| Arithmetic mistake in prior-year depreciation | Error | Restatement (prior-period adjustment) |
Only the change in depreciation method is applied prospectively: the remaining carrying amount is depreciated by the new method over the remaining life.
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