"VSOE" Is Necessary to Separately Recognize Revenue in Multiple-Element Contracts

question 136

Multiple Choice

"VSOE" is necessary to separately recognize revenue in multiple-element contracts for:

• A) All service contracts.
• B) All product contracts.
• C) All contracts that involve at least one non-software element.
• D) Software contracts.

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Definitions:

Consistency

denotes the attribute of being uniform, stable, and unchanging over a period of time.

Law of Effect

A principle of behavior psychology suggesting that actions which produce rewards tend to be repeated, while actions that produce discomfort are avoided.

Positive Outcomes

Favorable, beneficial, or desirable results from actions, decisions, or situations.

Fundamental Attribution Error

Overestimates internal factors and underestimates external factors as influences on someone’s behavior.