The General Rule Is That the Transaction Price Should Be

question 149

Multiple Choice

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

• A)not related to all of the contracts performance obligations
• B)related to all of the contracts performance obligations
• C)part of the variable consideration
• D)not part of the variable consideration

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Definitions:

Disaffirmed

The act of denying, rejecting, or declaring a contract or agreement void, especially in legal contexts involving minors or parties lacking capacity.

Minor

A person who is below the age of majority, legally considered not old enough to take responsibility for legal decisions.

Mental Impairment

A condition that limits a person's intellectual functioning or emotional wellbeing.

Void

A term describing a contract or legal agreement that has no legal force or effect, making it unenforceable by law.