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.

---

Definitions:

Renal Failure

A medical condition in which the kidneys lose the ability to remove waste and balance fluids, potentially leading to the need for dialysis or transplantation.

Respiratory Disorders

A wide range of conditions affecting the organs and tissues that make gas exchange possible, including conditions like asthma, COPD, and pneumonia.

Agent-Host-Environment Model

A framework in epidemiology that describes how the interaction between an infectious agent, a susceptible host, and the environment can result in disease.

Respiratory Disorder

A term for any disease or condition that affects the lungs or breathing, such as asthma, COPD, or pneumonia.