Waldman Associates Received a Written, Approved Contract to Deliver Economic

question 263

Multiple Choice

Waldman Associates received a written, approved contract to deliver economic consulting services, with service and payment commencing in one month. The contract specifies the services that Waldman is to perform, and the payment terms. Waldman and the customer both can cancel the contract without penalty prior to commencing service. Does Waldman have a contract for purposes of revenue recognition on the day the contract is received?

• A) Yes, because Waldman has a written approved contract.
• B) No, because Waldman and the customer can cancel without penalty, and neither has performed an obligation under the contract.
• C) Maybe, depending on whether Waldman can estimate collectability of the receivable.
• D) There is insufficient data on which to base an answer.

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Definitions:

Direct Selling

Direct selling is a retail channel that involves personal sales of products or services directly to consumers, often in their homes or at work, bypassing traditional retail locations.

Customer Journey Map

A visual or graphic representation that outlines all the interactions a customer has with a business throughout their purchasing process.

Interactive Experiences

Engaging activities or interfaces that allow for two-way communication or interaction between the user and the system.

Customer Engagement

The process of actively building, nurturing, and managing relationships with customers, typically involving communication and interaction through various channels.