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CPA FAR Practice Questions
Original practice questions for the US CPA Exam — Financial Accounting and Reporting (AICPA & NASBA), mixed across 2 topics with instant answers and explanations. Practise by topic below or take the timed mock test.
CPA FAR mixed practice
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Q1.Accounting & FinanceUnder the accounting equation, Assets =
Show answer & explanation
Answer: C — Liabilities + Equity
Assets = Liabilities + Owners’ equity.
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Q2.Simple & Compound InterestFind the simple interest on $14,000 at 10% per annum for 2 years.
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Answer: A — $2,800
SI = P × R × T / 100 = 14,000 × 10 × 2 / 100 = $2,800.
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Q3.Accounting & FinanceFind the compound interest on $17,000 at 20% per annum for 2 years, compounded annually.
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Answer: D — $7,480
A = P(1 + R/100)^T = 17,000 × 1.20^2 = 24,480; CI = A − P = $7,480.
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Q4.Simple & Compound InterestFind the simple interest on $10,000 at 4% per annum for 6 years.
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Answer: B — $2,400
SI = P × R × T / 100 = 10,000 × 4 × 6 / 100 = $2,400.
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Q5.Accounting & FinanceWorking capital is:
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Answer: C — Current assets − current liabilities
Working capital = current assets − current liabilities.
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Q6.Simple & Compound InterestFind the simple interest on $11,000 at 7.5% per annum for 3 years.
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Answer: B — $2,475
SI = P × R × T / 100 = 11,000 × 7.5 × 3 / 100 = $2,475.
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Q7.Accounting & Finance$18,000 is invested at 8% compounded annually. What is it worth after 5 years?
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Answer: A — $26,448
FV = PV(1 + r)ⁿ = 18,000 × 1.08^5 = $26,448.
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Q8.Simple & Compound InterestFind the simple interest on $17,000 at 4% per annum for 6 years.
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Answer: B — $4,080
SI = P × R × T / 100 = 17,000 × 4 × 6 / 100 = $4,080.
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Q9.Accounting & FinanceGoodwill arises when:
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Answer: C — One company acquires another for more than the fair value of net identifiable assets
Goodwill = purchase price − fair value of net identifiable assets acquired.
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Q10.Simple & Compound InterestFind the compound interest on $9,000 at 5% per annum for 2 years, compounded annually.
Show answer & explanation
Answer: C — $922.5
A = P(1 + R/100)^T = 9,000 × 1.05^2 = 9,922.5; CI = A − P = $922.5.
About CPA FAR
US CPA Exam — Financial Accounting and Reporting — conducted by AICPA & NASBA. The core CPA section on financial statements, transactions and governmental accounting.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
Practise by topic
- Accounting & Finance questions — Master the accounting equation, the three financial statements and time value of money: FV = PV(1 + r)ⁿ, PV of an annuity = PMT × [1 − (1 + r)⁻ⁿ]/r.
- Simple & Compound Interest questions — Simple interest grows linearly (PRT/100); compound interest multiplies by (1 + r/100) each period.
- CPA FAR mock test — 25 timed questions.
CPA FAR practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |