Smith Sells Computer Software to Miller That Requires Significant Construction

question 25

Multiple Choice

Smith sells computer software to Miller that requires significant construction.When recognizing revenue, Smith

• A)allocates the associated discounts to all the customization efforts, including upgrades
• B)can use percentage of completion to recognize revenue
• C)can recognize revenue upon delivery of the software
• D)must use the fair value of the software delivered in determining realizable revenue

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Definitions:

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and emotions.

Developmental Psychologists

Specialists in psychology who study the growth and changes in behavior, thinking, and emotions throughout a person's life.

Physiologically

refers to the functions and processes that occur within living organisms and their parts.

Behavioral

Relating to or concerning the actions or reactions of a person or animal in response to external or internal stimuli.