8. When multiple performance obligations exists in a contract, they should be accounted for as a single performance obligation when _________________.

a.

determination cannot be made

b.

the performance obligations are distinct but interdependent

c.

each service is interdependent and interrelated

d.

the product is distinct within the contract

9. When accounting for self-constructed PPE and funds are borrowed to pay for construction of assets that qualify for capitalization of interest, the excess funds not needed to pay for construction may be temporarily invested in interest-bearing securities. Interest earned on these temporary investments should be __________________.

a.

multiplied by an appropriate interest rate to determine the amount of interest to be capitalized

b.

recognized as revenue of the period

c.

used to increase the cost of assets being constructed

d.

offset against interest cost incurred during construction