SAR EXAM REVIEW QUESTIONS AND ANSWERS | LATEST SEARCH AND RESCUE
STUDY GUIDE 2026/2027
A researcher is looking for Recognition guidance for a public company. He has reviewed the
Scope and Recognition sections and has found some information that is on point. Which of the
following are 3 other sources of "Required Reading" that he should consult, for his search effort
to be thorough? - correct answer ✔✔Read any preceding paragraphs that are related to the
paragraphs he has found (as indicated by >>)., Consult the SEC sections, if his company is public,
to see whether there is guidance on Recognition., Consult the Implementation Guidance
section, to see whether there is guidance on this Recognition issue.
Assume that you are accounting for a patent (an intangible asset) acquired in a business
combination. You are trying to determine whether the intangible asset should be amortized.
Which two subtopics from the Intangibles—Goodwill and Other topic should you review in
order to find the most applicable guidance? - correct answer ✔✔10- Overall, 30- General
Intangibles Other Than Goodwill
In 2009, when the Codification was populated with original accounting standards, what
happened to these original standards? - correct answer ✔✔They were superseded and became
nonauthoritative
For each of the following issues, indicate which Codification section should be consulted.
Determining the timing for when an entity should recognize revenue.
This section provides general information on the Codification topic. If you are looking at an
unfamiliar Codification topic for the first time, this section is a good place to start.
Recording the effects of inventory obsolescence.
,Determining what amount (from within a range of possible losses) to record for a loss
contingency.
Determining whether an event occurring after the balance sheet date (a subsequent event)
should be recorded. - correct answer ✔✔Recognition
Overview and Background
Subsequent Measurement
Initial Measurement
Recognition
Correct statements about the Codification include which of the following? - correct answer
✔✔The FASB has designated the Codification as the sole source for its authoritative guidance.
The Codification became effective in 2009.
The purpose of the Codification is to simplify research.
All the above statements are true
In the following reference, which number reflects the Codification topic?
ASC 842-20-25-1 - correct answer ✔✔842
In the following reference, which number reflects the Codification section?
ASC 842-20-25-1 - correct answer ✔✔25
,Industry-specific guidance in the Codification generally applies BLANK to other general
Codification content. - correct answer ✔✔in addition
Is all SEC guidance contained within the Codification, and is SEC guidance considered
authoritative? - correct answer ✔✔No, not all SEC guidance is housed within the Codification;
yes, it is considered authoritative for public companies only.
Label the following Codification reference. Choices: Paragraph, Section, Topic, Subtopic
ASC 842-20-25-1
842:
20:
25:
1: - correct answer ✔✔Topic
Subtopic
Section
Paragraph
Recognition guidance within a topic tells you - correct answer ✔✔what, when, and how to
record an item.
Match the section description to its number.
05:
15:
25:
30:
50:
, 55: - correct answer ✔✔Overview and Background
Scope
Recognition
Initial Measurement
Disclosure
Implementation Guidance and Illustrations
Scope guidance within a topic tells you - correct answer ✔✔whether the guidance in a
particular topic applies to a transaction.
The FASB Codification is an aggregation of many, many accounting standards that have been
issued over the course of the past century. Which of the following original standards was not
used to populate the Codification? - correct answer ✔✔GASB Statements
The guidance currently used by the FASB to update the Codification is referred to as which of
the following? - correct answer ✔✔Accounting Standards Updates
To browse to guidance on employee pensions, in which "Area" should your search begin? -
correct answer ✔✔Expenses
To browse to the "Inventory" topic, in which "Area" should your search begin? - correct answer
✔✔Assets
To browse to the "Leases" topic, in which "Area" should your search begin? - correct answer
✔✔Broad Transactions
True or False: Guidance in the Codification applies to both public and nonpublic companies. -
correct answer ✔✔True
STUDY GUIDE 2026/2027
A researcher is looking for Recognition guidance for a public company. He has reviewed the
Scope and Recognition sections and has found some information that is on point. Which of the
following are 3 other sources of "Required Reading" that he should consult, for his search effort
to be thorough? - correct answer ✔✔Read any preceding paragraphs that are related to the
paragraphs he has found (as indicated by >>)., Consult the SEC sections, if his company is public,
to see whether there is guidance on Recognition., Consult the Implementation Guidance
section, to see whether there is guidance on this Recognition issue.
Assume that you are accounting for a patent (an intangible asset) acquired in a business
combination. You are trying to determine whether the intangible asset should be amortized.
Which two subtopics from the Intangibles—Goodwill and Other topic should you review in
order to find the most applicable guidance? - correct answer ✔✔10- Overall, 30- General
Intangibles Other Than Goodwill
In 2009, when the Codification was populated with original accounting standards, what
happened to these original standards? - correct answer ✔✔They were superseded and became
nonauthoritative
For each of the following issues, indicate which Codification section should be consulted.
Determining the timing for when an entity should recognize revenue.
This section provides general information on the Codification topic. If you are looking at an
unfamiliar Codification topic for the first time, this section is a good place to start.
Recording the effects of inventory obsolescence.
,Determining what amount (from within a range of possible losses) to record for a loss
contingency.
Determining whether an event occurring after the balance sheet date (a subsequent event)
should be recorded. - correct answer ✔✔Recognition
Overview and Background
Subsequent Measurement
Initial Measurement
Recognition
Correct statements about the Codification include which of the following? - correct answer
✔✔The FASB has designated the Codification as the sole source for its authoritative guidance.
The Codification became effective in 2009.
The purpose of the Codification is to simplify research.
All the above statements are true
In the following reference, which number reflects the Codification topic?
ASC 842-20-25-1 - correct answer ✔✔842
In the following reference, which number reflects the Codification section?
ASC 842-20-25-1 - correct answer ✔✔25
,Industry-specific guidance in the Codification generally applies BLANK to other general
Codification content. - correct answer ✔✔in addition
Is all SEC guidance contained within the Codification, and is SEC guidance considered
authoritative? - correct answer ✔✔No, not all SEC guidance is housed within the Codification;
yes, it is considered authoritative for public companies only.
Label the following Codification reference. Choices: Paragraph, Section, Topic, Subtopic
ASC 842-20-25-1
842:
20:
25:
1: - correct answer ✔✔Topic
Subtopic
Section
Paragraph
Recognition guidance within a topic tells you - correct answer ✔✔what, when, and how to
record an item.
Match the section description to its number.
05:
15:
25:
30:
50:
, 55: - correct answer ✔✔Overview and Background
Scope
Recognition
Initial Measurement
Disclosure
Implementation Guidance and Illustrations
Scope guidance within a topic tells you - correct answer ✔✔whether the guidance in a
particular topic applies to a transaction.
The FASB Codification is an aggregation of many, many accounting standards that have been
issued over the course of the past century. Which of the following original standards was not
used to populate the Codification? - correct answer ✔✔GASB Statements
The guidance currently used by the FASB to update the Codification is referred to as which of
the following? - correct answer ✔✔Accounting Standards Updates
To browse to guidance on employee pensions, in which "Area" should your search begin? -
correct answer ✔✔Expenses
To browse to the "Inventory" topic, in which "Area" should your search begin? - correct answer
✔✔Assets
To browse to the "Leases" topic, in which "Area" should your search begin? - correct answer
✔✔Broad Transactions
True or False: Guidance in the Codification applies to both public and nonpublic companies. -
correct answer ✔✔True
