CPA FAR: Cash, receivables, inventory, PP&E, intangibles and investments
Blueprint II.A–II.F · Area II, Select Balance Sheet Accounts · 30–40% of FAR
Ten FAR questions on cash, receivables, inventory, pp&e, intangibles and investments, untimed, with a reason for every answer option.
Or take the full FAR mock examDuring construction of its own warehouse, Ferris Co. had weighted-average accumulated expenditures of $600,000. It had a $400,000 construction loan at 8% and other general debt with a weighted-average rate of 10%. Total interest incurred was $150,000. How much interest should Ferris capitalize?
Cash, receivables, inventory, PP&E, intangibles and investments on CPA FAR
Area II of FAR (30–40%) covers balance sheet accounts. On the asset side you measure cash, receivables under the expected credit loss model, inventory, property and equipment, intangibles and investments.
- Blueprint groups
- II.A–II.F
- Share of the section
- Area II, Select Balance Sheet Accounts: 30–40%
- Our drill
- 10 questions from 13 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- Receivables are reported net of an allowance for expected credit losses (CECL); credit loss expense is whatever brings the allowance to the required balance (ASC 326-20-30-1).
- FIFO and average-cost inventory is measured at the lower of cost and net realizable value; LIFO and retail-method inventory stays at lower of cost or market (ASC 330-10-35-1B and 35-1C).
- Interest is capitalized on qualifying assets at the avoidable amount: specific borrowings first, then the weighted-average rate on other debt, capped at interest incurred (ASC 835-20-30-3).
- An asset held and used is impaired when its carrying amount exceeds undiscounted cash flows; the loss is carrying amount minus fair value (ASC 360-10-35-17).
- Public business entities do not amortize goodwill; they test it for impairment at least annually at the reporting unit level (ASC 350-20-35-1).
- Equity-method investments increase by the investor's share of income and decrease by dividends received (ASC 323-10-35-17); trading debt securities go to fair value through net income and AFS debt securities through OCI (ASC 320-10-35-1).
Test yourself on cash, receivables, inventory, pp&e, intangibles and investments
Ten FAR questions on cash, receivables, inventory, pp&e, intangibles and investments, untimed, with a reason for every answer option.
Or take the full FAR mock examCommon questions
How much of the FAR section is cash, receivables, inventory, pp&e, intangibles and investments?
It sits in Blueprint Area II (II.A–II.F). The AICPA weights whole areas, not single topics; see the area’s range on the FAR page. Our 50-question mock draws each area at the middle of its range.
Are these real FAR 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 FAR topics
- Financial statements, disclosures and ratiosdrill
- Not-for-profit and government reportingdrill
- Payables, debt and equitydrill
- Revenue recognition, lessee accounting and income taxesdrill
- Accounting changes, contingencies, fair value and subsequent eventsdrill
FAR full mock exam: 4 hours, 5 testletsFAR 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.