Under GAAP, with Respect to Multiple-Element Arrangements, If the Revenue

question 45

Multiple Choice

Under GAAP, with respect to multiple-element arrangements, if the revenue for a particular part of a multiple-element arrangement does not qualify for separate recognition, it is:

• A) Never recognized.
• B) Recognized when the contract is signed or persuasive evidence of an arrangement exists.
• C) Recognized when revenue for the other parts is recognized.
• D) Recognized at the end of the contract.

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Definitions:

Copyrights

Legal protections granted to the creators of original works, providing them exclusive rights to use and distribute their work for a certain period.

Paris Convention

An international treaty designed to provide a unified set of rules for the protection of intellectual property rights across the signatory countries.

National Treatment

A GATT principle of trade law that prohibits WTO member states from regulating, taxing, or otherwise treating imported products any differently from domestically produced products.

Right of Priority

An entitlement to preferential treatment or consideration over others, often in the context of legal rights or the position in an ordering system.