CPA FAR Exam Questions with 100% Verified Correct Answers 2026

CPA FAR Exam Questions with 100% Verified Correct Answers 2026 Identifying a Variable Interest (VIE) - Correct Answer All Must be Met: 1. There is an arrangement between company and business entity 2. The business entity is a legal entity 3. The business fails to qualify for an exclusion 4. The interest is more than insignificant 5. The company has an explicit or implicit variable interest in the entity Securities and Exchange Commission - Correct Answer - established in 1934 by Securities and Exchange Act - all public and large private companies are subject to their rules and regulations - has issued specific accounting rules and regulations in Regulation S-X, Financial Reporting Releases (FRR), Accounting Series Releases (ASR), Interpretative Releases (IR), etc. Committee on Accounting Procedures - Correct Answer determined GAAP from 1939 to 1959 - part-time committee of the AICPA that promulgated Accounting Research Bulletins Accounting Principles Board - Correct Answer determined GAAP from 1959 to 1973 - part time committee of the AICPA that issued Accounting Principles Board Opinions and APB interpretations Financial Accounting Standards Board - Correct Answer established in 1973 and has determined GAAP ever since then - up to 2009 issued Financial Accounting Standards, FASB interpretations, FASB technical Bulletins, Emerging Issues Task Force Statements, FASB Staff Positions, FASB implementation Guides, and Statements of Financial Accounting Concepts - has 7 full time members with 5 year terms FASB Accounting Standards Codification - Correct Answer - codified on July 2009 - became the single source of authoritative nongovernmental US GAAP FASB updates to ASC & SEC content - Correct Answer - FASB amendments issued for public comment through exposure drafts - majority vote of the Board need to approve an exposure draft for issuance - FASB staff analyzes all comment letters from public and then the Board re-deliberates the issue - FASB staff prepares an Accounting Standards Update for Board - majority vote of Board needed to amend the ASC IASB - Correct Answer established in 2001 as part of the International Financial Reporting Standards Foundation FASB Conceptual Framework - Correct Answer - statements of financial accounting concepts -serve as basis for financial accounting concepts for business and nonbusiness enterprises - NOT GAAP, just basic reasoning of why Objective of General Purpose Financial Reporting - Correct Answer to provide financial information about the reporting entity that is useful to the primary users in making decisions about providing resources to the reporting entity Form 10-K Deadlines - Correct Answer - Large Accelerated = 60 days - Accelerated = 75 days - All Others = 90 days Form 10K - Correct Answer must be filed annually by US registered companies - contains financial disclosures, including a summary of financial data, management's discussion a