The General Rule Is That the Transaction Price Should Be

question 147

Multiple Choice

The general rule is that the transaction price should be allocated to the performance obligations based on the relative standalone selling prices unless a discount is ________.

• A) not related to all of the contract's performance obligations
• B) related to all of the contract's performance obligations
• C) less than the standalone selling price
• D) not part of the variable consideration

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Definitions:

Semiannual Deposits

Semiannual deposits refer to money deposits made twice a year into a financial account or investment.

Compound Interest

Interest that is computed on both the initial principal amount and the interest that has been added to that principal from past periods of a deposit or loan.

Annual Rate

The interest rate for a period of one year, often used to compare the annual interest between different investments or loans.

Equal Annual Amounts

A term generally used in loan repayments or amortization schedules where payments are made in consistent amounts over the term of the loan.