IMPORTANCE OF FAR IN CPA US EXAM
IMPORTANCE OF FAR IN CPA US EXAM.
Financial Accounting and Reporting (FAR) is one of the four sections of the CPA US examination which you have to qualify to get the CPA certification. It examines your knowledge of several accounting standards used by government, non-profit, and commercial institutions. FAR, as one of the most difficult sections of the CPA USA Exam, needs the ideal preparation tips and methods to clear it on the first try.
FAR is arguably the toughest section to attend due to its complexity and extensiveness. It needs you to be well-versed in a wide range of technical issues involving formulas and calculations. Candidates frequently fear taking it because of the large material and memory required.
To nail this segment, keep the format in mind and employ dependable preparing resources. We examine the top seven FAR CPA US Exam strategies, which range from creating a good study strategy to mastering time management.
1. Take mock exams
AICPA provides various CPA US practice sets to give you a feel of what you are looking for. You can also view the CPA US Exam tutorials to learn more about the CPA exam software's functionality and features. Please watch these tutorials before taking the exam to become acquainted with the tools and navigation. Additionally, practice examinations and quizzes that closely resemble TBS and MCQ sets are also available. This will ensure that you are familiar with the format of the exam before taking it.
Always begin and end your study routine with a practice test. Mark the questions that you don't understand and go over them after you've answered the others. This will help you master time management and know when to move on from inquiries. Also, while reading the questions, pay attention to the phrases and technical terms
2. Include everything!
This is one of the most critical pieces of advice for anyone studying for the FAR CPA US exam. With such a vast range of topics in this part, applicants typically focus on preparing some topics extremely well while forgetting others. However, such a strategy will certainly backfire. Keep in mind that this section tests a huge range of information.
So, whether you choose self-study or prep course material, be certain that you cover everything. You don't have to memorize every topic, but you should try to understand everything thoroughly. Ensure you learn something new at every point. This way, you may be certain that you will not miss anything.
Divide the number of topics according to the number of days, weeks, or even months in your FAR exam preparation schedule. Set aside 1-2 subjects per day. Take it slow and don't go overboard. Also, don't skip a tough concept because it takes time. Instead, set it away for the weekends to obtain a thorough understanding.
3. Create an effective study strategy.
This general guideline is particularly pertinent to the FAR CPA US Exam segment. The only way to cover the substantial FAR content is to plan ahead of time and stick to it. Create a study schedule that works best for you. Keep your lifestyle, work schedule, and academic objectives in mind.
Also, maintain track of your everyday learning activities and stay focused. Take frequent rests to recharge your batteries and restart with a clear mind. Revise concepts regularly. For example, set out Sunday to review all of the principles you learned in the previous week.
Allow at least one month or two weeks for a final review. During this time, go through the weak spots and solve as many sample tests as feasible.
4. Comprehend journal entries
Journal entries are the foundation upon which an organization's financial integrity is built. Every correct entry guarantees that an institution's financial records portray the true financial picture to its stakeholders. As a result, the significance of journal entries cannot be emphasized.
The AICPA has assigned around 50% weightage to application tasks. The majority of these application tasks involve the preparation of journal entries and financial statements. You may also be asked to utilise your understanding of accounting rules and principles to compute, recognize, or correct financial statement entries.
As a result, practise journal entries ahead of time to be well-prepared for the final exam. Learn the fundamentals of registering all types of transactions.
5. Review the FAR CPA Exam Blueprints
The FAR CPA Exam Blueprints developed by the AICPA outline the minimum level of abilities and knowledge required to pass this section. It also contains sample task statements and content organised by region, group, and topic.
It is created by the same team that creates the examination, which increases the reliability factor. The Blueprints are released twice a year. So, be sure to download the most recent version and learn about the score weighting and skills assessed in each area.
Make notes based on the information provided. This way, you may organise your time well and achieve amazing outcomes.
6. Discover everything there is to know about Earnings Per Share.
Earnings Per Share (EPS) is an important indicator of the profits of the company. As a result, its computation is critical in determining a company's long-term performance.
The idea of EPS is frequently evaluated in the FAR exam section. As a result, learn how to accurately calculate basic and diluted EPS. Understand the elements that influence EPS as well. Furthermore, research elements of EPS reporting under the FASB Accounting Standards.
For a deeper understanding of this idea, consult with a specialist. Examine it as thoroughly as you can. Examine relevant examples and practise with real-life scenarios. Make a note of the formulas and go over them at least once a week.
7. Improve your time management abilities.
The FAR Exam part necessitates a good time management strategy because of its broad syllabus and complex calculations. It ensures that you finish the exam on time and in the best way possible.
Experiment with a large number of sample tests. Try to complete them within the four-hour time limit. This practice will help you become accustomed to the intensity of the actual exam. Maintain your organisation and retain your focus. Keep track of the time, but don't let the stress get to you.