Which Statement Is Correct About Multiple Performance Obligation Arrangements

question 71

Multiple Choice

Which statement is correct about multiple performance obligation arrangements?

• A)The residual method must normally be used.
• B)The relative stand-alone selling price method must normally be used.
• C)There is no specific method that must be used.
• D)The adjusted market assessment approach is an acceptable residual approach that may be used.

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Definitions:

Liability

Refers to the state of being legally responsible for something, such as a debt or obligation.

Agent

An individual or entity authorized to act on behalf of another, typically in a business or legal capacity, entering into agreements or making decisions.

Fiduciary Duties

Obligations one party has to act in the best interest of another party, such as a trustee towards a beneficiary.

General Partner

A type of ownership in a partnership where the general partner is responsible for the management of the partnership and is personally liable for its debts.