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Business Environment and Concepts CPA Exam Section

Business Environment and Concepts CPA Exam Section

Business Environment and Concepts CPA Exam Section: Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States, the CPA is a license to provide accounting services directly to the public. It is awarded by each of the 50 states for practice in that state. Additionally, almost every state (49 out of 50) has passed mobility laws in order to allow practice in their state by CPAs from other states. Although state licensing requirements vary, the minimum standard requirements include the passing of the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting related experience.

Continuing professional education (CPE) is also required to maintain licensure. Individuals who have been awarded the CPA but have lapsed in the fulfillment of the required CPE or have requested to be converted to inactive status are in many states permitted to use the designation “CPA Inactive” or an equivalent phrase. In most U.S. states, only CPAs are legally able to provide to the public attestation (including auditing) opinions on financial statements. Many CPAs are members of the American Institute of Certified Public Accountants and their state CPA society.

State laws vary widely regarding whether a non-CPA is even allowed to use the title accountant. To illustrate, Texas prohibits the use of the designations “accountant” and “auditor” by a person not certified as a Texas CPA, unless that person is a CPA in another state, is a non-resident of Texas, and otherwise meets the requirements for practice in Texas by out-of-state CPA firms and practitioners.

This is the whole information you need to get prepared for Financial Accounting Reporting. And you can check the things below for you help to study.

Business Environment and Concepts CPA Exam Section: FAR EXAM CONTENT

25-35% Conceptual Framework, Standard-Setting and Financial Reporting

  • Conceptual framework and standard-setting
  • General-purpose financial statements: for-profit business entities
  • General-purpose financial statements: nongovernmental, not-for-profit entities
  • Public company reporting topics
  • Financial statements of employee benefit plans
  • Special purpose frameworks

30-40% Select Financial Statement Accounts

  • Cash and cash equivalents
  • Trade receivables
  • Inventory
  • Property, plant and equipment
  • Investments
  • Intangible assets
  • Payables and accrued liabilities
  • Long-term debt
  • Equity
  • Revenue recognition
  • Compensation and benefits
  • Income taxes

20-30% Select Transactions

  • Accounting changes and error corrections
  • Business combinations
  • Contingencies and commitments
  • Derivatives and hedge accounting
  • Foreign currency transactions and translation
  • Leases
  • Nonreciprocal transfers
  • Research and development costs
  • Software costs
  • Subsequent events
  • Fair value measurements
  • Differences between IFRS and U.S. GAAP

5-15% State and Local Governments

  • State and local government concepts
  • Format and content of the Comprehensive Annual Financial Report (CAFR)
  • Deriving government-wide financial statements and reconciliation requirements
  • Typical items and specific types of transactions and events in governmental entity financial statements

Business Environment and Concepts CPA Exam Section: FAR EXAM SCORING

CPA candidates are given 4 hours to complete the FAR Exam and are required to receive an overall scale score of 75% or more. Below you can check the criteria and marks for different subjects.

MULTIPLE-CHOICE QUESTIONS (MCQS)
TEST-LETS2
OPERATIONAL54
PRETEST12
TOTAL MCQS66

Business Environment and Concepts CPA Exam Section

TASK-BASED SIMULATIONS (TBS)
OPERATIONAL7
PRETEST1
TOTAL TBS8

Business Environment and Concepts CPA Exam Section

The FAR Exam is 4 hours in length, however the competitor is not required to utilize all the dispensed time, and comprises of 66 Multiple Choice Questions (MCQs) and 8 Task-Based Simulations (TBSs).

Of the 66 MCQs, 54 are operational, which means they tally toward the exam score, while 12 are pretested and don’t tally toward the exam score. Of the 8 TBSs, 7 are operational and 1 pretested. Other than scoring, there is no utilitarian contrast amongst operational and pretested questions and no beyond any doubt route for the contender to differentiate between an operational and pretested address.

The FAR Exam is divided into five testlets – two 33-address MCQ testlets taken after by a 2-address TBS testlet, then a discretionary 15-minute break that does not represent a mark against the 4-hour test time, then two extra TBS testlets of three inquiries each. Once a testlet has been submitted, it can’t be returned to.

Business Environment and Concepts CPA Exam Section

Business Environment and Concepts CPA Exam Section  : 

Eligible candidates have the opportunity to take the Examination at Prometric test centers in Bahrain, Kuwait, Japan, Lebanon, and the United Arab Emirates (UAE) and Brazil. In order to qualify to take the  Examination outside the U.S., candidates will have to first establish their eligibility through application to a state board participating in the International CPA Examination Administration Program.

For specific instructions on how to apply to take the Examination, please visit the CPA Examination section of the NASBA website.

Business Environment and Concepts CPA Exam Section

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