FAR EXAMS: TIPS FOR HIGH SCORES

The Financial Accounting and Reporting (FAR) section of the CPA exam is one of the most challenging sections. It covers a wide range of topics, including financial statements, revenue recognition, leases, and consolidations. However, with the right preparation and study strategies, you can crack the FAR section and earn a high score. Here are some tips to help you succeed:

1. Understand the Content: The FAR section covers a large amount of material, and it’s important to have a solid understanding of the content before diving into practice questions. Make sure you’re familiar with the accounting principles, standards, and regulations that will be tested on the exam. Start by reviewing your accounting textbooks and study materials, and consider resources such as CPA courses, online forums, or study groups.
2. Use Multiple Study Resources: Don’t rely on just one study resource to prepare for the FAR section. Use a variety of study materials such as textbooks, online courses, and practice exams to ensure you’re getting a comprehensive review of the content. CPA courses are particularly helpful for the FAR section, as they provide structured study plans, video lectures, and practice questions.
3. Focus On the Basics: While the FAR section covers complex topics, it’s important to have a strong grasp of the basics. Make sure you understand fundamental accounting principles and concepts such as the accounting equation, double-entry accounting, and financial statement analysis. This foundation will be crucial as you tackle more complex topics like consolidations and leases.
4. Practice, Practice, Practice: Practice questions are key to preparing for the FAR section. Do as many practice questions as possible and review your answers thoroughly. Identify your strengths and weaknesses and focus your effort on different topics accordingly. The AICPA releases previous exam questions and answers, which are a valuable resource for practice. Additionally, CPA courses and study materials will provide practice questions and simulations that closely mirror the exam format.
5. Utilize Study Groups and Tutoring: Joining a study group or working with a tutor can provide additional support and guidance while preparing for the FAR section. Use these resources to ask questions and get feedback on your understanding of the material. Study groups and tutors can also provide motivation and accountability, which can be helpful during the CPA exam journey. Simandhar has a separate Telegram group where the students can discuss their study plans, ask questions and help each other with difficult topics.
6. Understand the Exam Format: The FAR section consists of 66 multiple-choice questions and 8 task-based simulations. Make sure you’re familiar with the exam format and understand the types of questions and simulations that will be on the exam. Use CPA courses and other study materials to practice taking exams in a simulated environment to get comfortable with the time constraints.
7. Time Management: Time management is crucial for the FAR section. Make sure you’re pacing yourself appropriately during the exam and don’t spend too much time on any one question. Keep track of your time and budget your time accordingly. For example, aim to spend no more than 1.5 minutes per multiple-choice question and about 15 minutes per simulation.
8. Stay Calm and Focused: The FAR section can be stressful, but it’s important to stay calm and focused during the exam. Take deep breaths, read questions carefully, and don’t get scared by difficult questions. If you’re feeling stuck on a question, flag it and come back to it later. Don’t let one difficult question derail your entire exam.

In conclusion, passing the FAR section requires dedication and hard work, but with the right study strategies, you can succeed. Use a variety of study resources, practice as much as possible, and stay focused and calm during the exam. With these tips, you’ll be on your way to cracking the FAR section and earning a high score.