The CPA Exam is composed of three Core Exam sections and one Discipline Exam, chosen from three options. The Business Analysis and Reporting (BAR) section is one of these three Disciplines. To help you prepare and pass, we're breaking down the structure and content of BAR, plus tips to help you get Exam Day ReadySM. Your career is waiting; it’s time to raise the BAR!
Summary
The BAR CPA Exam tests financial statement analysis, technical accounting and reporting, and state and local government accounting—advanced topics that build directly on the FAR Core section. Candidates have four hours to complete 50 multiple-choice questions (MCQs) and 7 task-based simulations (TBSs) across three content areas: Business Analysis (40–50%), Technical Accounting and Reporting (35–45%), and State and Local Governments (10–20%). BAR has one of the lowest pass rates among the three Disciplines, but the right preparation can significantly improve your odds of passing the first time.
Table of Contents
- What Is the BAR CPA Exam?
- BAR vs FAR: What's the Difference?
- BAR CPA Exam Format
- What's Tested on the BAR CPA Exam?
- How Is BAR Scored?
- Is the BAR CPA Exam Hard?
- 5 Tips to Pass the BAR CPA Exam
- Is BAR the Right Discipline for Me?
- BAR CPA Exam FAQs
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What Is the BAR CPA Exam?
The CPA Exam consists of four separate sections that assess a CPA candidate's knowledge and skills in complex accounting topics. Passing all four sections is required to earn the Certified Public Accountant (CPA) license.
While every candidate must pass the three Core Exam sections, candidates only choose one of three Discipline sections, which go deeper into the topics covered on one corresponding Core section. BAR is one of the three Discipline options, building upon content covered in the FAR Core section.
CPA Exam Core Sections (Candidates must pass all three):
- Financial Accounting & Reporting (FAR)
- Auditing & Attestation (AUD)
- Taxation & Regulation (REG)
CPA Exam Discipline Sections (Candidates choose one):
- Business Analysis & Reporting (BAR)
- Information Systems & Controls (ISC)
- Tax Compliance & Planning (TCP)
The Business Analysis and Reporting (BAR) section tests candidates' financial statement analysis, risk management and planning skills, with an added focus on the data and technology used in business decision-making. It's a natural fit for candidates aiming toward financial reporting, technical accounting, FP&A, advisory, or governmental accounting roles.
BAR vs FAR: What's the Difference?
The AICPA created BAR as an extension of FAR, testing advanced versions of skills and concepts that are introduced in their fundamental form on the FAR Core exam. For candidates aiming to specialize in financial analysis, technical accounting, and applied research, BAR offers a chance to demonstrate that deeper expertise.
For example, while FAR may ask a question about basic revenue recognition using the five-step process, BAR requires candidates to interpret and analyze agreements, contracts, and supporting documentation to apply those same revenue recognition concepts. Likewise, FAR only tests leases from the lessee's perspective, while BAR covers the lessor's perspective, which tends to be more complex.
After CPA Evolution, many topics that used to be part of the FAR exam shifted to its BAR Discipline. These include:
- Advanced governmental accounting
- Lessor accounting
- Derivatives and hedge accounting
- Employee benefit plans
- Indefinite-lived intangible assets
- Public company reporting
- SEC (S-X and S-K) reporting requirements
- Internally developed software
- Revenue recognition analysis
- Stock compensation
- Research and development costs
- Business combinations
- Advanced consolidated financial statements
BAR CPA Exam Format
The BAR CPA Exam is a four-hour exam made up of 50 multiple-choice questions (MCQs) and 7 task-based simulations (TBSs). The MCQs and TBSs are broken down across five "testlets," so the format when you sit for the exam looks like this:
- Pre-exam: Complete the welcome screen to confirm your information and enter your "launch" code, then your confidentiality code. You'll have five minutes for each screen.
- Testlet 1: 25 MCQs
- Testlet 2: 25 MCQs
- Testlet 3: Two TBSs
- 15-minute break that does not count toward your exam time
- Testlet 4: Three TBSs
- Testlet 5: Two TBSs
BAR Content Areas
- Business Analysis: 40 – 50%
- Technical Accounting and Reporting: 35 – 45%
- State and Local Governments: 10 – 20%
Skill Levels
All MCQs and TBSs on the BAR CPA Exam are tested at one of three skill levels defined by the AICPA:
- Remembering and Understanding: recalling specific facts and understanding what's being communicated and how to use it effectively
- Application: applying knowledge or concepts to practical, scenario-based questions
- Analysis: examining how separate pieces of information relate to one another to identify causes and support conclusions
BAR tests Remembering and Understanding skills in 10-20% of its questions. In 45-55%, BAR tests Application skills. And in 30 – 40% of questions, it tests Analysis. Notice that BAR skews more heavily toward Application and Analysis, meaning that you'll be asked to do something with the information much more often than you’ll be asked to simply recall it.
What's Tested on the BAR CPA Exam?
BAR includes financial statement analysis; technical accounting; and reporting and local, state, and government accounting and reporting. The AICPA provides this highly detailed breakdown of topics that may be tested in each content area of the exam:
Content Area I: Business Analysis
- Current period and historical analysis, including the use of data:
- Financial statement analysis
- Non-financial and non-GAAP measures of performance
- Managerial and cost accounting
- Prospective analysis, including the use of data
- Budgeting, forecasting and projection
- Capital structure
- Investment alternatives using financial valuation models
- Risk management
- Economic and market influences on business
Content Area II: Technical Accounting and Reporting
- Indefinite-lived intangible assets
- Internally developed software
- Revenue recognition
- Stock compensation
- Business combinations
- Research and development costs
- Consolidated financial statements
- Derivatives and hedge accounting
- Leases
- Public company reporting topics
- Financial statements and employee benefit plans
Content Area III: State and Local Governments
- Format and content of the financial section of the annual comprehensive financial report
- Government-side financial statements
- Governmental funds financial statements
- Proprietary funds financial statements
- Fiduciary funds financial statements
- Note to financial statements
- Management’s discussion and analysis
- Budgetary comparison reporting
- Required Supplementary Information (RSI)
- Financial reporting entity
- Deriving government-wide financial statements and reconciliation requirements
- Measurement, valuation, calculation and presentation in government entity financial statements
- Net position
- Fund balances
- Capital and infrastructure assets
- General and proprietary long-term liabilities
- Interfund activity, including transfers
- Nonexchange revenue transactions
- Expenditures and expenses
- Budgetary accounting and encumbrances
How Is BAR Scored?
The BAR CPA Exam is graded on a scale from 0 to 99, and you must score a 75 or above to pass. The 50 MCQs make up 50 percent of your weighted score, and the TBSs make up the other 50 percent.
While the AICPA does not grade on a curve, questions are weighted by difficulty, so harder questions count for more than easier ones. You can also earn partial credit on TBSs, since each scenario asks multiple questions. Once your exam is graded and weighted, your score is aggregated onto the 0–99 scale.
Is the BAR CPA Exam Hard?
Yes. BAR has consistently posted one of the lowest pass rates of any CPA Discipline section. The cumulative 2024–2025 BAR CPA pass rate was 40% for all candidates. However, Becker's Exam Day ReadySM students achieved an 86% higher pass rate than all other BAR test takers—showing that with the right preparation, you can absolutely pass on your first attempt.
The Hardest Parts of the BAR Exam
Candidates most often report struggling with:
- Derivatives and hedge accounting
- Business combinations and advanced consolidations
- Lessor accounting
- Stock compensation (share-based payments)
- Governmental fund accounting and GASB reporting (Area III)
- Interpreting data visualizations and non-GAAP performance measures
Building in dedicated review time for each of these areas, and practicing concept application over rote memorization, is one of the best ways to prepare before exam day.
5 Tips to Pass the BAR CPA Exam
Now that you know what's tested and how it's scored, here's how to prepare with confidence.
#1: Don't assume your FAR knowledge fully transfers.
BAR tests the advanced version of many FAR concepts: interpreting contracts and agreements instead of applying a formula or working through the lessor's side of a lease instead of the lessee's. Go into BAR expecting to build on your FAR foundation, not simply recall it.
#2: Get comfortable interpreting data.
BAR's Business Analysis area asks you to work with ratios, non-GAAP measures, forecasts, and dashboards beyond traditional debit-and-credit accounting. Practice interpreting and explaining what the numbers mean, rather than simply producing them.
#3: Don't overlook governmental accounting.
Most college curriculums spend far more time on for-profit accounting than governmental accounting, but Area III still makes up 10–20% of your BAR score. Give fund accounting, government-wide statements, and budgetary reporting dedicated study time rather than saving them for last.
#4: Practice application- and analysis-level questions.
With the Application skill level weighted at 45–55% and Analysis at 30–40%, BAR asks you to use concepts far more than it asks you to recite them. Prioritize scenario-based practice questions and task-based simulations over flashcard-style review.
Becker's CPA Exam Review offers a full set of BAR-specific study and practice materials to help you build these skills, including:
- Video instruction covering every topic on the exam
- MCQ and TBS practice questions
- Unlimited, personalized practice tests that use adaptive learning to focus on your weak areas
- Unlimited use of NewtTM AI to offer instant answers, explanations of why you went wrong, additional examples, and more in all major course learning areas
- Simulated exams that mirror the actual CPA Exam in length, format, and style
- Livestreaming courses from expert CPA instructors
- 1:1 tutoring sessions
#5: Manage your testing time with a plan.
A reasonable pace is about 1.8 minutes per MCQ (roughly 90 minutes for all 50 MCQs) and about 20 minutes per TBS (about 140 minutes for all 7), leaving roughly 10 minutes to review flagged questions. Practicing your timing before exam day helps you build the instinct for when to move on versus dig in.
Becker's simulated exams are built to mirror real testing conditions and the exam blueprint's question volume, weighting, and skill levels, so you'll get a full sense of both the content and the pacing before you sit for the real thing.
Is BAR the Right Discipline for Me?
Choosing your CPA Exam Discipline is an important decision that can shape your career trajectory, job opportunities, and future areas of specialization.
BAR may be the right Discipline for you if you enjoy analytics and reporting, studying and applying complex accounting standards, and dissecting financial documents to inform business decisions. It’s not the easiest Discipline, but if your interests and goals lie in this area, learning the material will be well worth the time you spend studying and will set you up for long-term success in your career.
Take our 4-question quiz to find which Discipline is right for you!
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Start with a free trial of Becker's CPA Exam Review and explore course resources including:
- Comprehensive BAR content aligned with the latest AICPA Blueprints
- Thousands of practice questions and simulations
- SkillBuilder video explanations
- Personalized study plans
- Adaptive learning technology (Adapt2U)
- Simulated exams that mirror the actual CPA Exam experience
- Expert instructor support and exam-day strategies
- 1:1 tutoring
- Newt AI study tool
Start your free trial of our leading CPA Exam Review and see how we've helped nearly 2 million students pass their exams!
BAR CPA Exam FAQs
Is BAR the hardest CPA Exam Discipline?
BAR has one of the lowest pass rates among the three Discipline sections, with a cumulative 2024–2025 industry pass rate of 40%. It covers advanced financial analysis, technical accounting, and governmental accounting—topics that go beyond what FAR tests in its fundamental form—which is why many candidates find it more demanding than ISC or TCP.
Do I have to take the BAR CPA Exam?
No. BAR is one of three Discipline options, along with ISC and TCP. All candidates must pass the three Core sections (AUD, FAR, REG), but you only need to pass one Discipline of your choice to become licensed.
How many questions are on the BAR CPA Exam?
The BAR CPA Exam consists of 50 multiple-choice questions (MCQs) and 7 task-based simulations (TBSs).
How long is the BAR CPA Exam?
Candidates have four hours to complete the BAR CPA Exam.
What score do I need to pass BAR?
Like every CPA Exam section, BAR is scored on a scale of 0 to 99. You must earn a 75 or higher to pass.
How long should I study for the BAR CPA Exam?
Becker recommends at least 120–150 total study hours for BAR. If you study 10–20 hours per week, plan to begin preparing 2–4 months before your test date. Candidates with a strong FAR foundation may need less time on shared concepts, but should still budget extra time for BAR-specific topics like data analytics and governmental accounting.
What's the difference between BAR and FAR?
FAR tests foundational financial accounting and reporting concepts required of every CPA candidate, while BAR (a Discipline you choose) tests the advanced version of many of those same concepts, plus new content like financial statement analysis, forecasting, and data-driven decision-making. For example, FAR tests leases from the lessee's perspective; BAR tests the more complex lessor's perspective.
When should I take the BAR CPA Exam?
If you've decided on BAR as your Discipline, the next step is figuring out the best order to take the CPA Exam. Many candidates take FAR before BAR since FAR builds the GAAP foundation BAR expands upon. Common sequencing options include FAR → BAR → AUD → REG, or REG → AUD → FAR → BAR if you'd rather build test-taking confidence first.
Can I finish the BAR CPA Exam in the 4-hour time limit?
Yes, with a paced approach. Plan for about 1.8 minutes per MCQ (roughly 90 minutes for all 50 MCQs) and about 20 minutes per TBS (roughly 140 minutes for all 7), which leaves about 10 minutes for a final review.
Do I need supplemental materials to pass BAR if I'm using Becker?
No. Becker's BAR CPA Exam Review course is designed to be a complete CPA Exam preparation solution, including comprehensive content coverage, practice questions, simulations, final review materials, and personalized study tools.
What should I do if I'm struggling with BAR concepts?
If you're finding BAR difficult, you're not alone; don't be discouraged. Rewatch lectures, review explanations for missed questions, and prioritize task-based simulation practice over passive review. Becker's Adapt2U technology and Newt AI study tool can help identify and target your specific gaps. You can also explore resources like 1:1 tutoring and LiveOnline classes, which provide real-time feedback and additional concept explanation.
Which careers benefit most from choosing the BAR Discipline?
BAR is a strong fit for candidates pursuing financial analysis and reporting, technical accounting, FP&A, advisory services, or governmental accounting roles, since the exam mirrors the analytical and reporting skills those careers require day to day.
