If a Contract Involves a Significant Financing Component

question 10

Multiple Choice

If a contract involves a significant financing component

• A) the time value of money is not required to determine transaction price if the payment is more than a year after the transfer occurs.
• B) the transaction amount should be based on the current sales price of goods or services.
• C) interest is not accrued as a result of the financing component.
• D) the time value of money is used to determine the fair value of the transaction.

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Definitions:

Chronic Relapsing Condition

A long-term illness characterized by periods of improvement followed by recurrence of symptoms, often seen in addiction and some chronic diseases.

Cognitive-Behavioral Therapeutics

A form of psychotherapy that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.

CENAPS

An acronym for the Center for Applied Sciences, which develops models and strategies for the treatment of addiction and related disorders.

Disease Model

A framework that views addiction as a chronic, relapsing disease with biological, psychological, and environmental factors influencing its development and manifestations.