Which of the Following Types of Service Transactions Is Most

question 14

Multiple Choice

Which of the following types of service transactions is most likely to require the proportional performance method of revenue recognition based on the seller's direct costs to perform each act?

• A) Processing of monthly mortgage payments by a mortgage banker
• B) Providing lessons,examinations,and grading by a correspondence school
• C) Providing maintenance services on equipment for a fixed periodic fee
• D) Delivering freight (by a trucking firm)

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Definitions:

Intelligence

Refers to the ability to learn, understand, and apply information, solve problems, and adapt to new situations.

Leadership Ability

The skillset or capacity an individual possesses to influence, motivate, and enable others to achieve organizational or group objectives.

HR Department

The division within an organization that is focused on activities related to employees, including recruitment, hiring, training, and benefits administration.

Production Jobs

Positions within an organization that are focused on the manufacturing or creation of goods and services.