Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in exchange for (a) the exclusive right to operate the only TechShop in a particular area for a five-year period, (b) the equipment necessary to distribute and repair AntonTech products, and (c) training services to be provided over a two-year period. Similar equipment and training can be purchased elsewhere.

 1. How many performance obligations exist in this contract?

a. 0

b. 1

c. 2

d. 3 

 

2. AntonTech should recognize revenue for the right to operate a Techshop?

a. No transaction

b. No revenue

c. Point in time

d. Overtime

 

3. AntonTech should recognize revenue for the equipment?

a. No transaction

b. No revenue

c. Point in Time

d. Over Time

Answer rating: 100% (QA)

1 D 3 The exclusive fiveyears right to operate the only TechStop in a particular are... View the full answer