If a Company Had an Agreement to Deliver Software That

question 69

Multiple Choice

If a company had an agreement to deliver software that requires significant production, modification, or customization, which method of revenue recognition should it use?

• A)percentage-of-completion method
• B)deposit method
• C)installment method
• D)cost recovery method

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Definitions:

Communications Revolution

A significant change in the way information is transmitted and received, often attributed to advancements in technology such as the internet.

Enlightenment

An intellectual and philosophical movement in the 17th and 18th centuries emphasizing reason, individualism, and skepticism of traditional doctrines.

Consumerism

The cultural model that encourages the acquisition of goods and services in ever-increasing amounts.

Evangelical Christianity

A branch of Protestant Christianity that emphasizes the importance of being "born again" and the authority of the Bible.