The certified public accountant (CPA) credential is a valuable tool for you to obtain. The designation will help you pursue a career in accounting and in other areas of business. To become a CPA, you must study for and pass the CPA exam. To increase your chances of success, you need to make sure you’ve prepared properly, including completing the necessary paperwork and requirements for your state, and study thoroughly for each of the four tests that make up the exam.

The financial accounting and reporting (FAR) test of the CPA exam covers the nuts and bolts of working as an accountant. One focus of this test is the typical transactions that an accountant posts each month and year. The FAR test also goes over accounting principles. Sun Co. is a wholly owned subsidiary of Star Co.

For the CPA exam, you need to have a thorough understanding of what an is. When a CPA performs an audit, he or she is providing an opinion. The opinion concerns whether the financial statements present information fairly, in all material respects, and in conformity with applicable reporting standards. An audit opinion comments on whether the financial statements are free of material misstatement.

The auditing and attestation test (AUD test) requires you to understand the entire process of auditing a company. An audit requires the CPA to provide an opinion. That opinion states whether or not the financial statements are materially correct. This work requires you to assess all of the accounts in both the balance sheet and the income statement.

You can think of the regulation (REG) test as having two parts. One part covers business law issues, including rules on selecting a business structure. The second part of the test goes over taxation. This test is technically the most difficult. It requires you to know and apply many rules, facts and figures. You may find that the REG questions require more focus than other types of questions.

The BEC test includes many topics that concern business management as well as economic concepts and the use of technology. This test covers the tools needed to succeed as a business manager. You’ll find that these concepts are similar to what you learn in a general study of business. Understanding business concepts: The topics on the BEC test are similar to what students learn in general business school classes.

The financial accounting and reporting (FAR) test requires the most number-crunching. This test covers what you’ll spend most of your time on when you start your accounting career. The test requires you to use many types of formulas, and to understand the process of accounting. It covers types of accounts, accounting transactions, and accounting principles: Using formulas: This test covers many of the day-to-day tasks you’ll encounter as a CPA, such as posting accounting transactions.

The CPA exam requires hundreds of hours of preparation and study. To pass the exam, it’s important to have a plan of attack. That plan includes registering with your state board, as well as deciding on a study plan for each of the four tests. Here are some points to consider: State boards of accountancy: Each state has a state board of accountancy.

Here are some important formulas that often appear on the CPA exam. Understanding these formulas will help you boost your test score. These formulas are used on nearly every CPA exam, so it's an easy way to get some correct answers under your belt. Also, knowing these formulas helps you understand other accounting concepts that are frequently tested.