EITF 00-21 Covers Revenue Recognition for Multiple-Part Arrangements, and Requires

question 108

Multiple Choice

EITF 00-21 covers revenue recognition for multiple-part arrangements, and requires that a seller recognize revenue for a particular part if:

• A)the part has value to the stand-alone basis.
• B)there is objective, reliable evidence as to the value of undelivered parts.
• C)the part constitutes at least a "preponderance of the fair value" of the total arrangement.
• D)Two of the above.

---

Definitions:

Prostate Gland

A gland in the male reproductive system that produces a fluid which helps to nourish and transport sperm.

Bulbourethral Glands

Small glands located near the base of the penis, involved in secreting a fluid that lubricates and neutralizes acidity during sexual arousal.

Seminal Vesicles

are paired glands located near the male bladder that produce a significant portion of the fluid constituting semen.

Prostate Gland

A gland in males surrounding the neck of the bladder and urethra, involved in the production of seminal fluid.