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CPA FAR Mock Test
A timed 25-question mock for the US CPA Exam — Financial Accounting and Reporting covering accounting & finance, simple & compound interest. Answer, submit and review every question with its explanation; set negative marking to match your exam’s current scheme.
CPA FAR mock test
25 questions · 1 mark each · the timer starts with your first answer and the test submits itself when time runs out.
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Q1.Accounting & FinanceWorking capital is:
Answer: D — Current assets − current liabilities
Working capital = current assets − current liabilities.
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Q2.Simple & Compound InterestFind the compound interest on $4,000 at 20% per annum for 3 years, compounded annually.
Answer: B — $2,912
A = P(1 + R/100)^T = 4,000 × 1.20^3 = 6,912; CI = A − P = $2,912.
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Q3.Accounting & FinanceFind the compound interest on $17,000 at 20% per annum for 2 years, compounded annually.
Answer: C — $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 $40,000 at 9% per annum for 3 years.
Answer: D — $10,800
SI = P × R × T / 100 = 40,000 × 9 × 3 / 100 = $10,800.
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Q5.Accounting & FinanceWhich ratio measures short-term liquidity?
Answer: D — Current ratio
Current ratio = current assets ÷ current liabilities.
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Q6.Simple & Compound InterestFind the compound interest on $17,000 at 20% per annum for 3 years, compounded annually.
Answer: B — $12,376
A = P(1 + R/100)^T = 17,000 × 1.20^3 = 29,376; CI = A − P = $12,376.
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Q7.Simple & Compound InterestFind the simple interest on $49,000 at 8% per annum for 6 years.
Answer: B — $23,520
SI = P × R × T / 100 = 49,000 × 8 × 6 / 100 = $23,520.
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Q8.Accounting & FinanceGoodwill arises when:
Answer: B — 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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Q9.Simple & Compound InterestFind the simple interest on $18,000 at 9% per annum for 4 years.
Answer: C — $6,480
SI = P × R × T / 100 = 18,000 × 9 × 4 / 100 = $6,480.
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Q10.Accounting & FinanceFind the compound interest on $3,000 at 5% per annum for 3 years, compounded annually.
Answer: C — $472.88
A = P(1 + R/100)^T = 3,000 × 1.05^3 = 3,472.88; CI = A − P = $472.88.
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Q11.Simple & Compound InterestFind the simple interest on $36,000 at 4% per annum for 5 years.
Answer: D — $7,200
SI = P × R × T / 100 = 36,000 × 4 × 5 / 100 = $7,200.
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Q12.Accounting & FinanceIf interest rates rise, the price of an existing fixed-rate bond generally:
Answer: B — Falls
Bond prices move inversely to market interest rates.
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Q13.Simple & Compound InterestFind the simple interest on $51,000 at 8% per annum for 2 years.
Answer: A — $8,160
SI = P × R × T / 100 = 51,000 × 8 × 2 / 100 = $8,160.
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Q14.Accounting & FinanceFind the compound interest on $30,000 at 10% per annum for 3 years, compounded annually.
Answer: B — $9,930
A = P(1 + R/100)^T = 30,000 × 1.10^3 = 39,930; CI = A − P = $9,930.
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Q15.Simple & Compound InterestFind the compound interest on $40,000 at 5% per annum for 3 years, compounded annually.
Answer: A — $6,305
A = P(1 + R/100)^T = 40,000 × 1.05^3 = 46,305; CI = A − P = $6,305.
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Q16.Accounting & FinanceThe time value of money means:
Answer: B — A sum today is worth more than the same sum in the future
Money available now can be invested to earn a return.
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Q17.Simple & Compound InterestFind the compound interest on $20,000 at 10% per annum for 3 years, compounded annually.
Answer: A — $6,620
A = P(1 + R/100)^T = 20,000 × 1.10^3 = 26,620; CI = A − P = $6,620.
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Q18.Accounting & FinanceFind the present value of $1,000 received at the end of each year for 2 years at 6%.
Answer: B — $1,833
PV of an ordinary annuity = PMT × [1 − (1 + r)⁻ⁿ]/r = 1,000 × 1.8334 = $1,833.
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Q19.Simple & Compound InterestFind the compound interest on $23,000 at 20% per annum for 3 years, compounded annually.
Answer: C — $16,744
A = P(1 + R/100)^T = 23,000 × 1.20^3 = 39,744; CI = A − P = $16,744.
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Q20.Accounting & FinanceWhich statement shows a company’s cash inflows and outflows from operating, investing and financing activities?
Answer: A — Cash flow statement
The cash flow statement groups cash flows into three activities.
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Q21.Simple & Compound InterestFind the compound interest on $11,000 at 5% per annum for 2 years, compounded annually.
Answer: B — $1,127.5
A = P(1 + R/100)^T = 11,000 × 1.05^2 = 12,127.5; CI = A − P = $1,127.5.
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Q22.Accounting & FinanceFind the present value of $2,000 received at the end of each year for 6 years at 10%.
Answer: B — $8,711
PV of an ordinary annuity = PMT × [1 − (1 + r)⁻ⁿ]/r = 2,000 × 4.3553 = $8,711.
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Q23.Simple & Compound InterestFind the compound interest on $25,000 at 5% per annum for 2 years, compounded annually.
Answer: D — $2,562.5
A = P(1 + R/100)^T = 25,000 × 1.05^2 = 27,562.5; CI = A − P = $2,562.5.
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Q24.Accounting & FinanceA debit entry increases:
Answer: B — Assets and expenses
In double entry, debits increase assets and expenses; credits increase liabilities, equity and revenue.
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Q25.Simple & Compound InterestFind the compound interest on $9,000 at 10% per annum for 3 years, compounded annually.
Answer: C — $2,979
A = P(1 + R/100)^T = 9,000 × 1.10^3 = 11,979; CI = A − P = $2,979.
How the mock test works
- The timer starts with your first answer; the test submits itself when time runs out.
- Choose the negative marking that matches your exam (this test has no negative marking by default — check the official notification).
- After submitting you get your score, accuracy, time taken and a topic-wise breakdown, then every explanation.
- “New mock test” builds another paper — calculation questions get new numbers.
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.
CPA FAR practice topics
| Topic | Section | Question source |
|---|---|---|
| Accounting & Finance | Finance | Calculated + question bank |
| Simple & Compound Interest | Quantitative aptitude | Calculated (new numbers every set) |