Question: When a contract includes multiple performance obligations... All revenue is recognized in the amount of the contract price on the date the contract is signed.

 When a contract includes multiple performance obligations... All revenue is recognized

When a contract includes multiple performance obligations... All revenue is recognized in the amount of the contract price on the date the contract is signed. Revenue is always recognized on a straight-line basis until the last performance obligation is satisfied. The contract price is allocated to each performance obligation in proportion to the obligations' stand-alone selling prices and recognized as revenue as each performance obligation is completed. All revenue is deferred until the date the last separate performance obligation is satisfied

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!