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.