Which of the Following Is Not True

question 92

Multiple Choice

Which of the following is not true?

• A)Licensing fees are recognized as revenue over time for any licenses for which the seller expects its ongoing activities to affect the benefits that the buyer receives from intellectual property.
• B)License fees are recognized over time for any license that is viewed as providing a right of access.
• C)License fees are recognized as revenue at a point in time if the buyer expects that the seller's future activities will not affect the benefit the buyer derives from the intellectual property.
• D)Licensing fees are recognized as revenue at the end of the license period,when the seller has completed its performance obligation to provide access to its intellectual property.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Current Liabilities

Obligations or debts that a company is expected to pay within one year or within its operating cycle.

Current Assets

Items that are projected to be turned into cash, disposed of, or used up within twelve months or the usual business operational cycle.

Fiscal Year

The one-year period a company or government uses for accounting purposes and preparing financial statements.