If the Sum of Standalone Selling Prices Is Greater Than

question 89

Multiple Choice

If the sum of standalone selling prices is greater than the transaction price,then any discount to the separate performance obligations should be allocated based on relative ________.

• A)market values
• B)standalone prices
• C)book values
• D)net present values

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Definitions:

Net Income

The profit a company generates after deducting all costs, expenses, and taxes from its total revenue.

Accrued Revenue

Revenue that has been earned, but not yet received in cash or recorded in the accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for accurate financial reporting.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim against the company's assets.