Your Ask Joey ™ Answer

How to Pass the FAR CPA Exam

What to Expect on the FAR Exam

The Financial Accounting and Reporting (FAR) section of the Uniform CPA examination is roughly a four-hour CPA exam section. This section covers basically everything covered for financial reporting standards, outlined in the FASB literature. Sound overwhelming? Fear not, because Universal CPA Review has outlined several strategies how for preparing and passing the FAR section exam.

The FAR Exam Format: 

The FAR section consists of two multiple-choice testlets and three sets of task-based simulations. The multiple-choice portion will be weighted 50% of your CPA exam score while the task-based simulations will amount to the other 50%. 

FAR CPA Exam Pass Rates

Let’s face it, there’s a reason why the FAR section is widely referred to as “the beast of the CPA exams.” The pass rates are a reflection of this. The FAR CPA exam pass rates were around 45% in both 2021 and 2022

How Hard is the FAR CPA Exam? 

Let’s be real, studying for the FAR CPA exam is very difficult to pass. I know that I personally had a very rude awakening when trying to pass FAR not fully realizing just how much more information needed to be understood than my financial reporting classes in college. I quickly realized that getting a 75% on the CPA exam wasn’t exactly the same as getting a 75% on professor Mason’s intermediate financial reporting class back in the college days!

So, How Do I Pass FAR? 

Just because we are telling you that the FAR section of the CPA exam is hard doesn’t meant that passing is impossible. If you recently failed the FAR CPA exam, you might just need to tweak your approach. 

As we previously mentioned, the amount of information tested on the CPA exam is far more than what was tested in college coursework. So, instead of attacking this as one single exam, let’s break this up into many bite-sized exams.

Here are the 4 steps to studying with Universal CPA Review:

Step #1) Watch the video lecture 

Regardless of the CPA review course you are using, you should utilize your time spent on the video lectures to understand the core concepts so that you can identify the primary topics that are asked and move on to the application phase of studying and practicing more CPA exam questions while you still are full of energy. Universal’s CPA test prep program has designed its animated video lectures so that you learn the basics and understand the big picture, but we encourage you to look at a CPA review course comparison chart so that you can better identify which study approach is best for you. 

Step #2) Flip through the study guide

Our study guides are meant to help you quickly refresh the information learned in the lectures and provide a point of reference for information. The study guides include the same visuals that were in the lecture.

Step #3) Work the MCQs + Videos

Everyone knows you learn best while on the job. The first time through the MCQs might be rough, but this is where you learn to apply the information. Be sure to watch the video explanations that accompany each MCQ if you are in doubt about a particular question!

Step #4) Work the Simulations + Videos

You can either work the simulations the first time through or during your period of review. Simulations are a great way to learn how multiple different topics come together and paint the big picture for you!

Other tips/advice:

a) Perform cumulative practice quizzes/tests on a weekly basis to keep information fresh
b) Review your own personal notes daily
c) Explain a topic out loud to yourself or a friend/family member


Back To All Questions

You might also be interested in...

  • Discontinued Operations on the FAR CPA Exam

    Overview of Discontinued Operations In financial reporting, discontinued operations refer to a component of a company’s core business or product line that have been divested or shut down. Discontinued operations will be reported (net of tax) separately from continuing operations on the income statement. The reason that discontinued operations are reported separately is so that...

  • Equity Method Excel Workbook

    If you would like to use the Excel workbook that was used to create the Universal CPA lecture on the equity method, please click the link below to download the Excel workbook: Equity Method Lecture Example https://youtu.be/QE4flnmuSkw

  • How Hard is the CPA Exam?

    So you’re thinking about taking the CPA exam? Whether you have a dream of becoming a tax advisor, feel as though you need public accounting experience, or just want to solidify your business acumen, the CPA license is one of the most prestigious and well respected licenses in the business world. The exam itself is...