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AICPA FAR (FAR) Practice Tests & Test Prep by Exam Edge - FAQ

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Why should I use Exam Edge to prepare for the AICPA Financial Accounting and Reporting Exam?

FAQ's for Exam Edge AICPA Financial Accounting and Reporting practice tests

We have ten great reasons why Exam Edge is the #1 source on the internet when it comes to preparing for AICPA Financial Accounting and Reporting test:

  • Comprehensive content: Exam Edge's AICPA Financial Accounting and Reporting practice tests are created specifically to prepare you for the real exam. All our AICPA FAR practice test questions parallel the topics covered on the real test. The topics themselves are covered in the same proportions as the real test too, based on outlines provided by the American Institute of Certified Public Accountants in their AICPA FAR test guidelines.

  • Realistic practice: Our AICPA FAR practice exams are designed to help familiarize you with the real test. With the same time limits as the real exam, our practice tests enable you to practice your pacing and time management ahead of test day.

  • Detailed explanations: As you complete your practice tests, we show you which questions you answered correctly and which ones you answered incorrectly, in addition to providing you with detailed step-by-step explanations for every single AICPA Financial Accounting and Reporting practice exam question.

  • Performance insights: After you complete a practice test, we provide you with your raw score (how many you answered correctly) and our estimate of the AICPA FAR score you would have received if you had taken the real test.

  • Ease of access: Because all our practice tests are web-based, there is no software to install. You can take AICPA FAR practice exams on any device with access to the internet, at any time.

  • Flexible use: If you must pause while taking one of our practice tests, you can continue right where you left off. When you continue the test, you will start exactly where you were, and with the same amount of time you had remaining.

  • Thousands of unique questions: We offer 5 different online practice exams with 500 unique questions to help you prepare for your AICPA Financial Accounting and Reporting!

  • Low cost: The cost of ordering 5 practice tests is less than the cost of taking the real AICPA FAR test. In other words, it would be less expensive to order 5 practice tests than to retake the real AICPA Financial Accounting and Reporting exam!

  • Our trusted reputation: As a fully accredited member of the Better Business Bureau, we uphold the highest level of business standards. You can rest assured that we maintain all of the BBB Standards for Trust.

  • Additional support: If you need additional help, we offer specialized tutoring. Our tutors are trained to help prepare you for success on the AICPA Financial Accounting and Reporting exam.

What score do I need to pass the AICPA FAR Exam?

To pass the AICPA Financial Accounting and Reporting test you need a score of .

The range of possible scores is 0 to 100.

How do I know the practice tests are reflective of the actual AICPA Financial Accounting and Reporting?

At Exam Edge, we are proud to invest time and effort to make sure that our practice tests are as realistic as possible. Our practice tests help you prepare by replicating key qualities of the real test, including:

  • The topics covered
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We have a team of professional writers that create our AICPA Financial Accounting and Reporting practice test questions based on the official test breakdown provided by the American Institute of Certified Public Accountants. We continually update our practice exams to keep them in sync with the most current version of the actual certification exam, so you can be certain that your preparations are both relevant and comprehensive.

Do you offer practice tests for other American Institute of Certified Public Accountants subjects?

Yes! We offer practice tests for 4 different exam subjects, and there are 20 unique exams utilizing 2000 practice exam questions. Every subject has a free sample practice test you can try too!
AICPA Auditing and Attestation (AUD ® ) Practice Tests
AICPA Business Environment and Concepts (BEC ® ) Practice Tests
AICPA Financial Accounting and Reporting (BEC ® ) Practice Tests
AICPA Regulation (REG ® ) Practice Tests

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How do I register for the real American Institute of Certified Public Accountants?

For up-to-date information about registration for the American Institute of Certified Public Accountants, refer to the American Institute of Certified Public Accountants website.

AICPA Financial Accounting and Reporting - FAQ Sample Questions

Transaction tagging is an audit procedure that is best defined as which of the following?

Correct Answer:
a technique in which an identifier providing a transaction with a special designation is added to the transaction record

transaction tagging is an audit procedure that is fundamentally defined as a technique in which an identifier providing a transaction with a special designation is added to the transaction record. this identifier, or tag, serves multiple purposes in the context of auditing and monitoring financial transactions. the primary purpose of this technique is to ensure that each transaction can be distinctly identified and tracked throughout an auditing process.

tags are used to mark transactions for various reasons, such as to highlight unusual or significant transactions for further review, to categorize transactions into different groups for analytical purposes, or to flag transactions that need to comply with specific regulatory requirements. by adding these identifiers, auditors can more easily trace these transactions through the financial system, which aids in the detailed examination and verification of financial records.

the process of transaction tagging involves appending a unique code or marker to each transaction within an organization's financial system. when a transaction is tagged, it can be automatically segregated and retrieved for analysis, thereby facilitating efficient audit trails and internal controls. this tagging not only helps in simplifying the audit process but also enhances the accuracy and reliability of the financial information, which is crucial for both internal management and external regulatory compliance.

furthermore, transaction tagging aids in the maintenance of data integrity and security. by marking transactions with specific tags, organizations can set up automated alerts or actions based on certain tagged activities, such as transactions that exceed a predetermined threshold or transactions that occur under unusual circumstances. this proactive approach helps in early detection of potential discrepancies or fraudulent activities, thereby mitigating risks associated with financial misstatements or malpractices.

in summary, transaction tagging is an indispensable tool in modern auditing and financial management. it allows for precise control and review of financial transactions, ensuring that auditors and company management have a clear and detailed insight into the financial activities of the organization. the ability to log and snapshot these activities through tagging not only streamlines the audit process but also strengthens the overall financial governance within the company.

In a purchasing cycle, which of the following departments reconciles the purchase order and receiving report and approves the purchase invoice for the payment?

Correct Answer:
accounts payable
in a purchasing cycle, the responsibility for reconciling the purchase order and receiving report and subsequently approving the purchase invoice for payment typically falls to the accounts payable department. this department plays a crucial role in ensuring the accuracy and legitimacy of financial transactions related to purchasing within a company.

the process begins when the purchasing department issues a purchase requisition, which is an internal document used to request the procurement of goods or services. this requisition leads to the creation of a purchase order (po), which is sent to a supplier to order the requested items. once the goods or services are delivered, the receiving department provides a receiving report that verifies and documents the receipt of the order.

these documents—purchase requisition, purchase order, receiving report, and the supplier's purchase invoice—are essential for maintaining transparency and accountability in the purchasing process. they are collected and maintained in what is often referred to as a pending or open file within the accounts payable department.

the role of accounts payable is to ensure that all these documents correspond accurately to each other. they perform a three-way match between the purchase order, the receiving report, and the purchase invoice. this matching process is critical as it helps prevent errors and fraudulent activities by confirming that the goods or services billed by the supplier were actually ordered and received.

once the documents are verified and matched, the accounts payable department checks for any further necessary authorizations or approvals. following this, accounts payable prepares a voucher, which serves as an internal document authorizing the payment to the supplier. the voucher includes details such as the vendor's name, payment amount, and the corresponding ledger accounts to be debited and credited in the organization’s financial system.

therefore, the accounts payable department is key in the closure of the purchasing cycle. by reconciling orders and receipts and approving invoices for payment, this department ensures that payments are made only for verified, authorized purchases, thereby safeguarding the financial integrity of the organization.