When Contract Modification Occurs, and the Company Determines a New

question 56

Multiple Choice

When contract modification occurs, and the company determines a new contract and performance obligation has resulted,

• A) the accounting for the original contract must be modified to reflect the new contract.
• B) the original contract remains the same.
• C) the new contract must be recorded separately.
• D) Both B and C are correct.

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Definitions:

Teleconference

A meeting conducted over the telephone or through a digital platform that allows participants to communicate at a distance.

Web Conferencing

A method of holding meetings or live presentations over the internet where participants can interact.

Organizational Norms

The shared expectations and rules that guide behavior of people within an organization.

Continuous Process Improvement

A methodology aimed at identifying and implementing valuable changes to processes, enhancing efficiency and quality.