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The CPA Exam: Financial Accounting And Reporting

The financial accounting and reporting section is widely regarded as the hardest of the four sections of the CPA test. There are several reasons for this, the most obvious being its massive size compared to the others. The amount of material is roughly the size of the other three sections and covers everything from the financial statements, profit sharing plans, time value of money, non-profit, and governmental accounting just to name a few.

In addition to the AICPA expecting the participant to know all these topics, the exam also is used to train the taker into approaching problems a certain way. Simply knowing the material is not good enough to pass. A participant must look for qualifying phrases such as is/isn't, true/not true, and other little circumstances that pop up that completely change the way certain things are accounted.

The FAR section also has the most practical use of the four sections. While theory and vocabulary drivers the other sections, the things FAR deals with are things every accountant deals with in their daily work-life. It certainly helps in learning the various methods of accounting, yet the shear amount of the material can still be overwhelming.

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