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FAR — Revenue Recognition (ASC 606)
The 5-step model for recognizing revenue from contracts with customers under current US GAAP.
What you need to know
15 steps: identify contract → identify obligations → determine transaction price → allocate → recognize
2Variable consideration: estimated via expected value or most likely amount — must not be significantly reversed
3Contract modifications: treated as new contract OR modification of existing, depending on distinct goods/services
4Performance obligations: each distinct promise to transfer goods/services recognized separately
ASC 606 questions appear in ~20% of FAR items
About the CPA
- Full name
- Certified Public Accountant
- Passing score
- 75 scaled score (not a percentage)
- Questions in bank
- 2,600+
FAR — Revenue Recognition (ASC 606) — AI Practice Questions
2,600+ questions. Instant AI explanations for every wrong answer. Adaptive difficulty that targets your weak spots.
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Other CPA Topics
AUD — Audit Risk & Internal Controls
Study →Risk assessment, the audit risk model, and evaluating the effectiveness of internal controls.
REG — Partnership & Flow-Through Taxation
Study →Partner basis calculations, at-risk rules, passive activity limitations, and special allocations.
FAR — Governmental Accounting
Study →Government-wide and fund financial statements — different measurement focus and basis of accounting from GAAP.