Question: For contracts that include more than one separate performance obligation: Revenue is recognized in the amount of the contract price on the date the last

For contracts that include more than one separate performance obligation:

Revenue is recognized in the amount of the contract price on the date the last separate performance obligation is satisfied.

Revenue is recognized in the amount of the contract price on the date the contract is signed.

The contract price is allocated to each performance obligation in proportion to the obligations' stand-alone selling prices.

Revenue is recorded over time at the fair value of each performance obligation.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

For contracts that include more than one separate performance obligation: Revenue is recognized in the amount of the contron contract is signed. Revenue is recorded over time at the fair value of...

Q:

Question 1 The core revenue principle states that Companies recognize revenue when the earnings process is virtually complete and it is probable that payments will be received. Companies recognize...

Q:

. . . For contracts that include more than one separate performance obligation: Revenue is recorded over time at the fair value of each performance obligation. Revenue is recognized in the amount of...

Q:

For contracts that include more than one separate performance obligation: Revenue is recognized in the amount of the contract price on the date the contract is signed. Revenue is recorded over time...

Q:

5. Revenue likely is recognized over time for all of the following arrangements except for a.) Bank earning interest on a long term loan. b.) Construction of a building. c.) Providing a two-year gym...

Q:

11 Which of the following is not an indicator that revenue can be recognized over time? a The seller is enhancing an asset that the buyer controls as the service is performed b. The customer consumes...

Q:

(1) The impairment loss for property, plant and equipment, should be reported in the income statement as: a. A separate component of income from discontinued operations. b. A separate component of...

Q:

7. For contracts that include more than one separate performance obligation: A) Revenue recorded over time at the fair value of each performance obligation. B) Revenue recognized the amount of the...

Q:

20. A company's year-end balance in accounts receivable is $2.100,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of S37,000. An aging of accounts receivable at...

Q:

The impairment loss for property, plant and equipment, should be reported in the income statement as: a . A separate component of income from discontinued operations. b . A separate component of...

Q:

Let Q(t) = t2. As in the previous exercise, find a formula for the average rate of change of Q over the interval [1, t] and use it to estimate the instantaneous rate of change at t = 1. Repeat for...

Q:

Book Values versus Market Values in calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why?

Q:

In order to be a resident, for South African income tax purposes, a natural person must comply with the ordinarily resident test and the physical presence test. Is this statement True or False?...

Q:

While some individuals may appear predisposed to leadership roles, leadership is a skill and set of behaviors that can be learned and developed over time.

Q:

Enhance decision-making skills to provide solutions to complex HRM situations.

Q:

Understand how the cultural and institutional features of a country can shape employee attitudes about HRM practices in general, and diversity management in particular.

Q:

Acquire knowledge and understanding of the coordination and integration processes of human resource management (HRM) in global companies.