I am sure you must be aware of all the syllabus and papers that you need to clear to become a Certified Public Accountant. But just in case if you are new to this, let me give you a quick brief.
In order to clear the CPA exam, you need to pass four papers, namely:
- AUD – Auditing and Attestation.
- FAR – Financial Accounting and Reporting
- REG – Regulation
- BEC – Business Environment Concepts
You need to get a minimum of 75% or above to get the CPA certification within a time period of a maximum of 18 months.
While all papers are important, but it is always suggested to take up FAR as your first paper. It is not only time consuming but also covers the maximum information. And in this blog, I am going to tell you all about what is the best way to study for the FAR CPA exam, study tips for the FAR CPA exam and FAR CPA exam tips.
Let us get started with
FAR CPA Exam Section, Areas And Concepts
FAR CPA basically covers four areas:
- Conceptual framework, standard framework and financial reporting – 25% – 35%
- Select financial statement accounts – 30% – 40%
- Select transaction – 20% – 30%
- State and local government – 5% – 15%
FAR Exam Structure has 5 testlets that you need to appear for. Each testlet has 33 multiple choice questions, testlet 3 has 2 task-based questions and testlet 4 and 5 has 3 task-based questions each.
Now that you know all the basics about the FAR CPA exam section, areas and concepts, the next big thing is what are the study tips for the FAR CPA exam?
Study Tips For FAR CPA Exam
Proper planning and time management is the most important preparation tip for any type of exam. And the same applies for the FAR CPA exam as well. If you wish to clear the exam in your first attempt, all you have to do is follow these FAR CPA exam tips.
#1. Study tip for FAR CPA Exam – Schedule Your Time:
Many candidates fail FAR CPA exam because they do not study enough. Considering the amount of material you need to know to clear FAR, you need to put in the maximum time for this paper.
One of the basic FAR CPA exam tips is, plan ahead and stick to rigid study hours so you don’t run out of time to prepare for FAR.
For example, if you plan to study for 3 months, try to cover all the syllabus, read all possible syllabus books, listen to audio lectures and watch all the videos in the first 2 months. Then use the last month for your revision. During this time, you need to focus on the remaining weak spots and try to get high scores across all content areas. With this plan, you should be able to complete your course and be fully prepared for FAR in 3 months.
#2. Study tip for FAR CPA Exam – Do Not Skip Difficult Concepts:
One of the major mistakes that the candidates make is to skip difficult concepts, hoping that they won’t be asked in the final paper. You need to avoid this blunder. Obviously you cannot predict what question will come in the exam and therefore, skipping any topic is strictly not recommended.
Everyone has their own blind spots. For this reason, intermediate study time should be given to ensure that you can reach a thorough understanding of all of your weaknesses.
Another reason for this FAR CPA exam tip is that you never know what will be in your version of the exam. Therefore, unless you don’t mind taking the CPA FAR test again, you cannot risk skipping any of your study material. Instead, sought out the challenging areas and tackle them first.
#3. Study tip for FAR CPA Exam – Do Not Forget The Journal Entries:
Journal entries are an important part of the accounting, so make sure you get a hands-on it before you run out of time. The ability to make journal entries is the foundation of financial accounting. Therefore, if you are not very good at it or if you have not touched journal entries for a long time, you will have to make extra efforts in this area to prepare for FAR.
This FAR CPA Exam tip is especially for those candidates who are not an accounting major. If you know what is your loophole, you better work on it in advance rather than regretting it later.
#4. Study tip for FAR CPA Exam – Do Not Rush To Complete The Course:
Just because you need to finish your course in a set time, does not mean that you need to rush for it. Just complete the course without proper understanding will not serve the purpose.
The most important FAR CPA exam tip is, don’t appear for it until you are not confident about it.
Questions and answers tend to be simple and clear: you get them or you don’t (unlike subjective questions in AUD). You need to understand, where you stand.
In addition, if you are familiar with GAAP and related calculations, FAR is a section that you can clear with relative confidence.
However, if you are concerned about being late and not completing all your revision before the exam date, you can also postpone the planning phase of the FAR CPA exam. By doing so, you risk having your preferred Prometric test centre refilled on ideal test dates. But, you don’t have to force yourself to take the exam when you’re not ready.
One of the best things about the CPA exam is that you can schedule your exam date at any time. So make sure you are all set before you go for it.
These were some of the important study tips for FAR CPA exam that will you prepare for your exam with full potential.
If you wish you get any further assistance, do not hesitate to visit Route Academy, where we will not only guide you about the best way to study for FAR CPA exam but also give useful tips to clear your CPA exam in the first attempt. You can also mail us at info@route.academy or contact at +91-9999620372.
