Free CPA FAR Practice Questions 2026: 1,400+ With Solutions

Try 3 free CPA FAR questions

Choose an answer, then view its worked solution.

Question 1 Easy

Under U.S. GAAP, a deferred tax liability arises when:

Solution

D is correct.

Under ASC 740-10-25, a deferred tax liability (DTL) arises from taxable temporary differences, which occur when an asset's book carrying amount exceeds its tax basis. When the asset is recovered (through depreciation, sale, or use), the excess book amount over tax basis will result in additional taxable income in future periods.

Question 2 Medium

Which costs are included in the depletable base of a natural resource?

Solution

A is correct.

The depletable base includes the acquisition cost, exploration and development costs, and the present value of any asset retirement (restoration) obligation, reduced by the expected residual value of the land. Extraction equipment is a separate depreciable asset, and restoration is included at present value, not its undiscounted total. See ASC 930, Extractive Activities, and ASC 410-20 on asset retirement obligations.

Question 3 Hard

Under the regulatory basis of accounting (a special purpose framework), which of the following statements is correct regarding how transactions are recorded?

Solution

B is correct.

The regulatory basis of accounting is a special purpose framework under which financial statements are prepared in accordance with the financial reporting provisions prescribed by a governmental regulatory agency. These provisions may differ from U.S. GAAP in how transactions are recognized, measured, and disclosed. Examples include state insurance commission reporting requirements or banking regulatory reporting.

CPA FAR (Financial Accounting and Reporting) is a 4-hour exam scored half on multiple-choice questions and half on task-based simulations. Its 2025 pass rate was 42.12%, the lowest of the three CPA core sections, according to the AICPA's published pass rates. FreeFellow's FAR bank has 1,439 original multiple-choice practice questions, each with a worked solution. The full original question bank is free with an account, subject to usage limits. Worked solutions, written lessons, mixed practice, and your readiness score stay free. You can try sample questions without signing up. The task-based simulations and timed mock exams are part of Fellow, the paid tier.

The exam and where the points go

FAR runs four hours across five testlets. The first two are multiple choice, 25 questions each. The last three hold seven task-based simulations, the spreadsheet-style items where you prepare or correct figures from supporting documents. Multiple choice and simulations each count for half your scaled score, which runs from 0 to 99 with 75 to pass.

The blueprint in effect since January 2026 has three areas: Financial Reporting (30 to 40%), Select Balance Sheet Accounts (30 to 40%) and Select Transactions (25 to 35%). Consolidations and the statement of cash flows fall under Financial Reporting, as do two state and local government topics. The larger State and Local Governments area is in BAR, one of the discipline sections.

How to practice for FAR

Start with multiple choice across every topic. When you miss a question or guess right, read the worked solution and redo the calculation yourself. Once a topic feels solid, try simulations on it. A simulation asks you to produce the numbers from documents rather than pick them out of four choices. Fellow analytics on the FAR question bank show your accuracy by topic, which helps you decide what to work on next.

Get used to the simulation interface before exam day. The AICPA's free CPA Exam sample test runs in the exam software, and the CPA FAR task-based simulations guide covers the format. Why FAR has the lowest pass rate goes into what makes the section hard.

Here's one way to lay out your weeks, stretched or squeezed to fit your schedule:

Weeks 1 to 4: lessons and multiple choice, topic by topic, reviewing every miss
Weeks 5 to 8: mixed multiple choice plus simulations for each area you've finished
Final weeks: the AICPA sample test, timed mixed sets and simulations on your weakest areas

The free FAR bank

The CPA FAR question bank has 1,439 practice questions across every FAR topic, each with a worked solution. It also has 35 written lessons, three difficulty levels, a formula sheet, mixed practice and readiness tracking. Timed mock exams, task-based simulations with per-cell grading, spaced-repetition flashcards, topic drilling and analytics come with Fellow, the optional paid tier. The free FAR diagnostic gives you a readiness score without signing up. For the other five sections, see best free CPA study materials.

Frequently Asked Questions

What is the CPA FAR pass rate?

The AICPA's published pass rates put FAR at 42.12% for 2025, the lowest of the three core sections. Half the score comes from task-based simulations, so practice them alongside multiple choice rather than leaving them for the end.

How is the CPA FAR exam structured?

FAR is a 4-hour exam split across five testlets: two multiple-choice testlets and three testlets of task-based simulations. Roughly half your scaled score comes from multiple choice and half from simulations, so both halves need real practice time.

How many practice questions do I need for CPA FAR?

There isn't a set number. Work through every FAR topic, and review each miss until you can do the calculation yourself. FreeFellow has more than 1,400 FAR questions across every topic area at three difficulty levels. Practice task-based simulations too, since they're half the score.

What are the hardest topics on CPA FAR?

I'd plan extra time for consolidations and the statement of cash flows. The blueprint expects you to prepare both from supporting documents and correct errors in them, which is the kind of work the simulations ask for. After that, your accuracy by topic shows where you're weakest.

What CPA candidates are saying

“I practised the Lease questions subtopic by subtopic in Area 3F, and it was honestly a great experience. Learning felt much easier, faster, and more organised. It was especially helpful when I got a question wrong, because I could immediately connect the mistake to the exact concept.”

Harvin S.

“I have been finding the FreeFellow materials incredibly helpful. The way you break down complex topics is making a real difference in my CPA prep.”

Joshua S.

Try 3 free CPA FAR questions

The exam and where the points go

How to practice for FAR

The free FAR bank

Frequently Asked Questions

What CPA candidates are saying

Ready to practice?