Under EITF 00-21, If the Revenue for a Particular Part

question 29

Multiple Choice

Under EITF 00-21, if the revenue for a particular part of a multiple-part 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 are recognized.
• D)None of these.

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Definitions:

Private Firms

Businesses owned and controlled by individuals or groups of individuals, as opposed to being owned by the government.

Property Rights

Legal rights to possess, use, and dispose of assets including real property (land and buildings) and intellectual property.

Fundamental Function

A basic or essential function that is fundamental to a system or process.

Government

The organization that is the governing authority of a political unit, responsible for creating and enforcing laws and managing public resources and services.