CPA FAR: Payables, debt and equity
Blueprint II.G, II.H, II.I · Area II, Select Balance Sheet Accounts · 30–40% of FAR
Ten FAR questions on payables, debt and equity, untimed, with a reason for every answer option.
Or take the full FAR mock examA corporation effects a 2-for-1 stock split by halving par value and doubling the shares outstanding. What is the effect on total stockholders' equity?
Payables, debt and equity on CPA FAR
The rest of Area II covers payables and accruals, debt, and equity: bond pricing and effective interest, refinancing and classification, extinguishments, stock issuances, dividends, splits and treasury stock.
- Blueprint groups
- II.G, II.H, II.I
- Share of the section
- Area II, Select Balance Sheet Accounts: 30–40%
- Our drill
- 10 questions from 12 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- Bonds are priced at the present value of principal and interest at the market rate; interest expense = carrying amount × market rate under the effective interest method (ASC 835-30-35-2).
- A short-term obligation is classified as noncurrent if the entity intends to refinance it long term and shows the ability before the statements are issued (ASC 470-10-45-14).
- Debt issuance costs are a direct deduction from the carrying amount of the debt (ASC 835-30-45-1A).
- Small stock dividends (under 20–25%) are recorded at fair value; large ones at par; stock splits need no entry (ASC 505-20-30-3 and 30-4).
- Under the cost method, treasury stock is debited at cost; reissuance above cost credits paid-in capital from treasury stock (ASC 505-30-30-8).
- Mandatorily redeemable financial instruments, such as preferred stock with a fixed redemption date, are liabilities (ASC 480-10-25-4).
Test yourself on payables, debt and equity
Ten FAR questions on payables, debt and equity, untimed, with a reason for every answer option.
Or take the full FAR mock examCommon questions
How much of the FAR section is payables, debt and equity?
It sits in Blueprint Area II (II.G, II.H, II.I). 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
- Cash, receivables, inventory, PP&E, intangibles and investmentsdrill
- 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.