CPA BAR: State and local governments
Blueprint III.A–III.C · Area III, State and Local Governments · 10–20% of BAR
Ten BAR questions on state and local governments, untimed, with a reason for every answer option.
Or take the full BAR mock examUnder GASB Statement 87, how does a government lessee report a long-term lease in its government-wide statements?
State and local governments on CPA BAR
Area III of BAR (10–20%) covers state and local governments in depth: the format of the annual comprehensive financial report, deriving government-wide statements from fund statements, and measuring typical governmental transactions.
- Blueprint groups
- III.A–III.C
- Share of the section
- Area III, State and Local Governments: 10–20%
- Our drill
- 10 questions from 11 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- The ACFR has introductory, financial and statistical sections; MD&A and budgetary comparisons are required supplementary information.
- Reconciling funds to government-wide statements adds capital outlay, subtracts depreciation, subtracts bond proceeds and adds principal repayments.
- Bond proceeds are an other financing source in governmental funds and a liability in government-wide statements.
- Fund balance classes are nonspendable, restricted, committed, assigned and unassigned; committed amounts require formal action by the highest authority (GASB 54).
- Activities required to recover costs through fees are enterprise funds; services to other departments are internal service funds; fiduciary funds are excluded from government-wide statements.
- GASB 87 lessees recognize a lease liability and an intangible right-to-use asset.
Test yourself on state and local governments
Ten BAR questions on state and local governments, untimed, with a reason for every answer option.
Or take the full BAR mock examCommon questions
How much of the BAR section is state and local governments?
It sits in Blueprint Area III (III.A–III.C). The AICPA weights whole areas, not single topics; see the area’s range on the BAR page. Our 50-question mock draws each area at the middle of its range.
Are these real BAR questions?
No. The AICPA does not release live exam questions. These are original practice questions written to the published 2027 CPA Exam Blueprints, with a reason for every answer option and the standard or code section behind the key.
More BAR topics
- Financial statement, non-GAAP and risk analysisdrill
- Cost accounting, budgeting and capital decisionsdrill
- Goodwill, software, R&D, revenue, stock compensation and business combinationsdrill
- Derivatives, hedging, leases and public company reportingdrill
BAR full mock exam: 4 hours, 5 testletsBAR task-based simulations
Blueprint and exam facts checked November 2026: AICPA: Learn what is tested on the CPA Exam (Blueprints effective January 1, 2027) · AICPA: CPA Exam score release and testing windows · NASBA: CPA Exam FAQ · Virginia Board of Accountancy: CPA Exam fees.
Original independent practice questions written to the AICPA CPA Exam Blueprints. Not affiliated with or endorsed by the AICPA or NASBA.