How long is FAR, and how many questions are on the exam?

FAR has 4 hours of testing time, 50 MCQs, and 7 task-based simulations. The two MCQ testlets contain 25 and 25 questions. The three simulation testlets contain 2, 3, 2 TBSs.

How is FAR weighted between MCQs and simulations?

MCQs contribute 50% of the section score and TBSs contribute 50%. The content-area ranges describe a different dimension: how the tested content is allocated across the blueprint. Neither set of percentages is a personalized study-time plan.

Is FAR required for every CPA candidate?

FAR is a required Core section, alongside the other two Core sections. Candidates also select one Discipline from BAR, ISC, and TCP.

Do I need an account for these FAR questions?

No. All 5 sample questions, answer checking, explanations, progress, and reset controls on this page are free without signup. For more practice, create a free MiloPrep account with 100 questions in total, with daily limits. Your account stays free forever.

Are these official AICPA exam questions?

These are independently authored questions from the MiloPrep question bank. The AICPA blueprint defines the exam scope and format; it is not the source of these practice items.

Does this practice set cover the full FAR blueprint?

This 5-question set is a starting point for practice and explanation review. It does not cover every blueprint task or predict an exam score. Use the linked FAR study guide and official 2026 blueprint to plan complete coverage.

Core · Financial Accounting and Reporting

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Balance Sheet/Statement of Financial Position
Question 1. On a classified balance sheet, which of the following items is properly presented as a current asset?
Answer to question 1A. Land held for future plant expansionB. A patent with a remaining useful life of eight yearsC. Prepaid insurance that will expire within the next twelve monthsD. Goodwill arising from a business combination
Explanation after you answer
Equity
Question 2. Ridgeline Technologies, a federal government contractor organized as a corporation, had the following equity transaction during 2025: On July 1, 2025, Ridgeline Technologies issued 200,000 shares of its $10 par value common stock at $50 per share for total cash proceeds of $10,000,000. The shares were issued to raise capital for a new 5-year construction project. What is the correct journal entry to record this stock issuance?
Answer to question 2A. Debit Cash $10,000,000; Credit Common Stock $10,000,000B. Debit Cash $10,000,000; Credit Common Stock $2,000,000; Credit Capital Projects Fund $8,000,000C. Debit Cash $10,000,000; Credit Common Stock $2,000,000; Credit Additional Paid-in Capital $8,000,000D. Debit Cash $10,000,000; Credit Common Stock $2,000,000; Credit Revenue from Stock Issuance $8,000,000
Explanation after you answer
Accounting Changes and Error Corrections
Question 3. Under U.S. GAAP, when a change in accounting principle cannot be distinguished from a change in accounting estimate, the change should be reported as:
Answer to question 3A. A change in accounting estimate with prospective applicationB. A change in reporting entity with retrospective applicationC. A change in accounting principle with retrospective applicationD. An error correction with restatement of prior periods
Explanation after you answer
Inventory
Question 4. Which of the following cost flow assumptions assigns the most recent purchase costs to cost of goods sold?
Answer to question 4A. LIFOB. FIFOC. Weighted averageD. Specific identification
Explanation after you answer
Consolidated Financial Statements
Question 5. Which of the following best describes where noncontrolling interest is presented in consolidated financial statements?
Answer to question 5A. As a separate line item within total liabilitiesB. As a separate component within the equity sectionC. As a deduction from total consolidated assetsD. As a contra-equity account reducing retained earnings
Explanation after you answer

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Questions from the MiloPrep question bank. Independently authored practice, not official exam items. This short set is for learning and does not predict an exam score.

2026 FAR exam format

FAR is one of the three required Core sections. Every CPA candidate completes AUD, FAR, and REG, plus one Discipline. The 4-hour exam combines multiple-choice questions with task-based simulations, which ask you to work through a case using the supplied information.

Section type

Core

Required for all candidates

Testing time

4 hours

Five testlets

Multiple-choice questions

50 MCQs

50% of the section score

Task-based simulations

7 TBSs

50% of the section score

How the five testlets are arranged

Testlet 1
25 MCQs
Testlet 2
25 MCQs
Testlet 3
2 TBSs
Testlet 4
3 TBSs
Testlet 5
2 TBSs

MCQs account for 50% of your section score; simulations account for 50%. These are score weights, so preparing for both formats matters. They do not prescribe how you should divide your study hours.

Verify the format with AICPA

What does FAR test?

FAR tests the preparation and review of financial statements, account balances, and transactions. It covers financial reporting for business and not-for-profit entities, along with foundational state and local government concepts.

Work from the economic event to recognition, measurement, the journal entry, and the resulting financial statements. Simulations can require you to reconcile supporting documents and correct an amount rather than recall an entry in isolation.

How to study these skills

Build a reporting chain for each problem: event, measurement, entry, account balance, statement, and disclosure. Use rollforwards to reconcile your work and check that an adjustment reaches every affected output.

Read the free FAR section guide

FAR content areas and exam percentages

The AICPA blueprint effective January 1, 2026 defines these content areas and allocation ranges. Use every area in your study plan, then spend additional time where practice shows a gap.

FAR blueprint content areas, study guidance, and allocation ranges
Content area and what to learn	Exam weight
Area I Financial Reporting	30-40%
Prepare and interpret financial statements, including business and not-for-profit reporting. Distinguish reporting frameworks and understand foundational government accounting concepts. Practice focus: Use a trial balance and supporting information to identify an error in the financial statements.
Area II Select Balance Sheet Accounts	30-40%
Study recognition and measurement for major asset and liability accounts. Reconcile changes in balances and determine which amounts belong in the current reporting period. Practice focus: Roll equipment forward from its opening balance through additions, depreciation, and disposals.
Area III Select Transactions	25-35%
Trace the accounting consequences of transactions, estimates, and corrections. Keep recognition, timing, classification, and disclosure connected to the underlying facts. Practice focus: Calculate an adjustment and carry its effects through the income statement and balance sheet.

The ranges describe content allocation, not a guaranteed question count for each topic. The blueprint also lists representative tasks, skill levels, and references; its task list is not exhaustive.

Open the official 2026 AICPA blueprint (PDF) FAR study guide

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For each missed answer, note the rule you needed and the fact you overlooked. Review the related topic, then try a fresh scenario. Repeating a familiar set helps review the explanation, but broader practice is needed to check your understanding.

Free FAR section guide

Connect the format and content areas to a study sequence, worked example, and review plan.

Explore the FAR guide

Official AICPA blueprint

Check the 2026 content groups, representative tasks, skills, and references for Financial Accounting and Reporting.

Open the blueprint PDF

More free CPA practice

Choose another Core or Discipline section and work through its questions and explanations.

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FAR practice: questions and answers

What does the FAR CPA section test?: Financial Accounting and Reporting covers Financial Reporting; Select Balance Sheet Accounts; Select Transactions. Work from the economic event to recognition, measurement, the journal entry, and the resulting financial statements. Simulations can require you to reconcile supporting documents and correct an amount rather than recall an entry in isolation.
How long is FAR, and how many questions are on the exam?: FAR has 4 hours of testing time, 50 MCQs, and 7 task-based simulations. The two MCQ testlets contain 25 and 25 questions. The three simulation testlets contain 2, 3, 2 TBSs.
How is FAR weighted between MCQs and simulations?: MCQs contribute 50% of the section score and TBSs contribute 50%. The content-area ranges describe a different dimension: how the tested content is allocated across the blueprint. Neither set of percentages is a personalized study-time plan.
Is FAR required for every CPA candidate?: FAR is a required Core section, alongside the other two Core sections. Candidates also select one Discipline from BAR, ISC, and TCP.
Do I need an account for these FAR questions?: No. All 5 sample questions, answer checking, explanations, progress, and reset controls on this page are free without signup. For more practice, create a free MiloPrep account with 100 questions in total, with daily limits. Your account stays free forever.
Are these official AICPA exam questions?: These are independently authored questions from the MiloPrep question bank. The AICPA blueprint defines the exam scope and format; it is not the source of these practice items.
Does this practice set cover the full FAR blueprint?: This 5-question set is a starting point for practice and explanation review. It does not cover every blueprint task or predict an exam score. Use the linked FAR study guide and official 2026 blueprint to plan complete coverage.

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