Which One of the Following Approaches Is Not a Method

question 161

Multiple Choice

Which one of the following approaches is not a method for allocating a transaction price to multiple performance obligations?

• A) adjusted market assessment
• B) expected-cost-plus-a-margin
• C) residual
• D) present cost basis

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Definitions:

Net Income

The amount of profit left after deducting all costs, taxes, and expenses from total revenue.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life.

Cash Dividends

Payments made by a corporation to its shareholder members, typically in the form of cash, as a distribution of profits.

Accounts Receivable

Money owed to a company by its customers from sales or services rendered on credit.