PocketCPA

Common/preferred stock, treasury & dividends on the FAR CPA Exam

Common/preferred stock, treasury & dividends is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.I, Equity, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.

Section
FAR, Financial Accounting and Reporting
Area
FAR.II, Select Balance Sheet Accounts, 30 to 40% of the section
Group
FAR.II.I, Equity
Authoritative literature
ASC 505
Skill levels tested
Remembering, Application

Which standard covers Common/preferred stock, treasury & dividends on the CPA Exam?

Common/preferred stock, treasury & dividends is tested against ASC 505. The wider group FAR.II.I also reaches ASC 260, ASC 718, ASC 805, ASC 845.

At what skill level is Common/preferred stock, treasury & dividends tested?

Common/preferred stock, treasury & dividends is tested at 2 skill levels: Remembering (recall and understanding, which is multiple choice territory), Application (applying a rule to a fact pattern, which is where most simulations sit).

Is Common/preferred stock, treasury & dividends tested outside FAR?

Yes. The same literature is tested outside FAR: ASC 505 in FAR.I.A (General-purpose financial statements: for-profit entities).

Area, group, topic, standard and skill levels are the AICPA published blueprint. Pass rates are the AICPA published candidate pass rates for 2026 through Q2, read from AICPA & CIMA on 2026-08-17. The AICPA publishes them quarterly. Where the same standard is tested outside FAR is PocketCPA's own mapping.

Every FAR blueprint area, group and topic · Which standards the CPA Exam tests · FAR pass rate and format

Common questions

Is Common/preferred stock, treasury & dividends tested on the CPA Exam?

Common/preferred stock, treasury & dividends is tested on the FAR section of the CPA Exam. It is a named topic of blueprint group FAR.II.I, Equity, which sits in FAR Area II, Select Balance Sheet Accounts, at 30 to 40% of the section.