According to FASB, Initial Franchise Fees Should Be Recognized as Income

question 37

Multiple Choice

According to FASB, initial franchise fees should be recognized as income when:

• A)the franchiser has substantially performed or satisfied all material services and conditions.
• B)the franchiser has collected the majority of fee in cash.
• C)the franchisee shows the ability to pay the fee.
• D)the franchiser bills the franchisee.

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