If More Than One Performance Obligation Exists,the Total Contract Price

question 232

Multiple Choice

If more than one performance obligation exists,the total contract price:

• A)is split by referring to the stand-alone price of each part sold separately.
• B)is recognized as revenue once one of the performance obligations is satisfied.
• C)is recognized as Deferred Revenue and later recognized as Revenue when the performance obligations are satisfied.
• D)is allocated by contract,first to written contracts,then to verbal contracts,and finally to implied contracts.

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Definitions:

Federal Courts

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Federal Law

Legislation enacted by the national government or Congress that applies to the entire country.

Jurisdiction

The authority given to a legal body like a court to administer justice within a certain area of law or geographic territory.

Pleadings

Written statements filed with a court by parties to a legal dispute detailing their claims, defenses, and other legal arguments.