Complete Electronics Inc

question 41

Multiple Choice

Complete Electronics Inc.sells a point-of-sale computer with a two-year service contract.Complete collects $3,000 cash for the selling price of the computer and $576 for the two-year service contract.How is revenue recognized?

• A)Complete will record Sales Revenue of $3,576 when the computer is delivered to the customer.
• B)Complete will record Sales Revenue of $1,788 per year for two years.
• C)Complete will record Sales Revenue of $3,000 when the computer is delivered and Service Revenue of $24 per month for 24 months.
• D)Complete will record Sales Revenue of $3,000 when the computer is delivered and will record revenue for the service contract as service calls are made.

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Definitions:

Color Vision Deficiency

A condition impacting the ability to perceive colors accurately, commonly referred to as color blindness.

X Chromosome

One of the two sex chromosomes, present in both males (XY) and females (XX), involved in determining sex and other genetic traits.

Basilar Membrane

A key structure within the cochlea of the inner ear, playing a critical role in the perception of sound by vibrating in response to frequencies.

Rods

Specialized cells in the retina that are sensitive to low light levels and are responsible for peripheral and night vision.