The Pattern Lab
Every FAR question is one of 27 recurring patterns. Learn to spot each one, run its playbook, and clear them all. Each pattern has a recognition guide and a cross-topic drill.
Patterns cleared
0 / 27Statements and presentation
Where items land on the statements, and which statement carries them.
The Classification Call
Where an item sits is a bright-line rules test: bucket it first, then compute anything.
11 questions
Net Income or OCI
The PUFI items go to OCI; everything else, including all equity securities, hits net income.
8 questions
The Cash Flow Map
Every flow lands in operating, investing, or financing by its nature, and non-cash deals go only in the schedule.
11 questions
Assets
Measuring, depreciating, and writing down the asset side.
The Inventory Flow
The cost flow assumption plus the direction of the error decides income.
8 questions
The Depreciation Machine
Pick the method, respect its salvage rule, and prorate for time; DDB ignores salvage in the rate but never crosses it.
8 questions
The Receivable Events
Each receivable event has a fixed journal entry, and only the estimate touches income.
8 questions
The Intangible Test
Acquired intangibles are capitalized, internally generated ones are expensed, and goodwill is impairment-only.
8 questions
The Security Bucket
Classification picks the measurement: trading through net income, AFS debt through OCI, HTM at amortized cost, and all equity through net income.
8 questions
Investments and consolidation
Ownership percentage picks the method, and control means consolidate.
Liabilities and equity
Bonds, equity transactions, EPS, and contingencies.
The Bond Math
Cash follows the coupon on face; expense follows the market rate on carrying value; the difference amortizes toward face.
8 questions
The Equity Effect
Every equity transaction has a fixed net effect: splits move nothing, small stock dividends move fair value within equity, and treasury stock is contra-equity.
8 questions
The EPS Engine
Basic is income minus preferred dividends over weighted shares; diluted adds each security only if it dilutes, most dilutive first.
8 questions
Probable and Estimable
Probable and estimable means accrue, reasonably possible means disclose, remote means silence, and gains never accrue.
9 questions
Revenue, taxes, and leases
The three big frameworks: ASC 606, ASC 740, and ASC 842.
The Five-Step Split
Find the obligations, set the price, split it by standalone selling price, and recognize as each obligation is satisfied.
8 questions
The Deferred Tax Direction
Future deductible means DTA, future taxable means DTL, permanent differences mean nothing, all measured at the enacted future rate.
8 questions
The Lease Test
Any one of the five criteria makes it a finance lease, and under ASC 842 either kind goes on the balance sheet.
8 questions
Changes and events
Accounting changes, error corrections, and subsequent events.
Measurement and frameworks
The fair value hierarchy and the non-GAAP special purpose frameworks.
The Level Game
Level 1 is a quoted price for the identical asset in an active market; anything less observable slides down the ladder.
8 questions
The Framework Basis
Special purpose frameworks are honest about not being GAAP: different titles, a described basis, and full audits are still possible.
8 questions
Public company reporting
SEC filings, interim reporting, and segment disclosures.
Not-for-profit
Donor restrictions, pledges, and the ASU 2016-14 reporting model.
The Restriction Gate
Only a donor can restrict: two net asset classes, board designations stay without restrictions, and spending releases the restriction.
8 questions
The Pledge Test
Unconditional pledges are revenue now, discounted if long-term; conditional pledges wait as refundable advances until the barrier falls.
8 questions
The NFP Reporting Rules
ASU 2016-14 sets the mechanics: a functional expense analysis for every NFP, the liquidity disclosure, and netted investment return.
8 questions
Governmental
Fund types and the modified accrual basis of accounting.
The Fund Picker
Follow the money's customer: outsiders mean enterprise, other departments mean internal service, held for others means fiduciary.
8 questions
The Modified Accrual Switch
Governmental funds run on modified accrual: revenue when measurable and available (60 days), capital outlay as an expenditure, and no depreciation.
8 questions