Which Statement Is Correct About Multiple Performance Obligation Arrangements

question 79

Multiple Choice

Which statement is correct about multiple performance obligation arrangements?

• A)The revenue recognition criteria no longer apply to these transactions.
• B)The revenue must be allocated to the components of the sale evenly over the life of the contract.
• C)The revenue must be recognized evenly over the life of the contract.
• D)Identifying the different sources of revenue increases the representational faithfulness.

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Definitions:

Contingency Approaches

Management theories suggesting that there is no one best way to make decisions; rather, the optimal choice depends on the situation.

Transactional Leadership Approaches

Leadership styles focused on the supervision, organization, and group performance, based on a system of rewards and penalties for achieving specific goals.

Trait Approaches

Trait approaches in psychology propose that individual personalities are composed of broad dispositions, and that these traits influence behavior.

Behavioral Leadership Approaches

Theories focusing on the observable behaviors of leaders and how these behaviors influence their effectiveness in guiding and motivating others.