Sullivan Should Recognize Revenue for the Two Parts of the Arrangement

question 93

Multiple Choice

Sullivan should recognize revenue for the two parts of the arrangement as follows:

• A)Recognize the entire $500 when the customer pays cash to buy the package.
• B)Recognize the portion of the $500 attributable to the software program when the customer pays cash to buy the package;defer the portion attributable to technical support and recognize over the support period.
• C)Defer the entire $500 and recognize over the support period.
• D)Recognize the entire $500 upon conclusion of the support period.

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Definitions:

Benefit From Each Other

A situation or relationship in which all parties involved gain advantages or positives from their association or interaction.

Plant Parasites

Organisms that derive nutrients at the expense of plants, often causing harm to their plant hosts.

Armillaria

A genus of parasitic fungi known to cause root rot in plants, some species of which are bioluminescent.

Siphons Sugars

A non-standard term possibly referring to the process of moving sugars within plants or between organisms, though not a widely recognized key term in this exact wording.