Which of the Following Is Not True About Accounting for Revenue

question 305

Multiple Choice

Which of the following is not true about accounting for revenue from franchise arrangements?

• A)Franchise arrangements often include a performance obligation for a license as well as for delivery of goods and services.
• B)Franchise arrangements typically include one or more performance obligations for which revenue is recognized at a point in time.
• C)Franchise arrangements typically include one or more performance obligations for which revenue is recognized over a period of time.
• D)Franchise arrangements typically include one performance obligation because the goods and services included in the arrangement are not separately identifiable.

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Definitions:

Career

The pattern of work-related experiences that spans the course of a person’s life.

Occupational License

A certification requirement by a regulatory body that permits an individual to legally perform specific tasks or jobs in a certain profession.

Job Eligibility

The qualifications and criteria a candidate must meet to be considered suitable for a specific job, including education, experience, and skills.

Discrete Exchange

A transaction between two parties that is singular, clearly defined, and often involves a one-time exchange of goods or services.