27. Oracle Corp. develops general ledger and other business application software that it sells to its customers. The customer pays an up-front fee for the right to use the software and a monthly fee for support services. When Oracle Corp. can recognize the upfront fee as revenue?

A) When the company receives the money

B) Ratably over the period of time that the company provides monthly services

C) When the software is installed

D) When the company stops to provide monthly services

13. Company A and Company B have same RNOA, which is 15%. Company A is totally financed by equity and Company B is 80% financed by equity and 20% financed by debt (cost of debt=7%), which of the following situations is more likely to occur?

A) Company A's ROE = Company B's ROE

B) Company A's ROE > Company B's ROE

C) Company A's ROE< Company B's ROE

D) Cannot determine

14. Company A has negative net non-operating obligation (NNO<0) and its net non-operating expense percent (NNEP) is lower than RNOA. Which of the following situations is more likely to occur?

A) RNOA=ROE

B) RNOA>ROE

C) RNOA

D) Cannot determine