For Contracts That Include More Than One Separate Performance Obligation

question 125

Multiple Choice

For contracts that include more than one separate performance obligation:

• A) Revenue is recorded over time at the fair value of each performance obligation.
• B) Revenue is recognized in the amount of the contract price on the date the last separate performance obligation is satisfied.
• C) The contract price is allocated to each performance obligation in proportion to the obligations' stand-alone selling prices.
• D) Revenue is recognized in the amount of the contract price on the date the contract is signed.

---

Definitions:

Statement of Intention

A legal document declaring a debtor's plans regarding the handling of certain types of debts and assets in bankruptcy proceedings.

Secured

Pertaining to loans or debts backed by collateral, ensuring protection for the lender in case of default by the borrower.

Consumer Debts

Debts incurred for personal, as opposed to business, needs.

Secured Debt

A type of debt that is backed by collateral, providing the lender with a claim to the asset if the debt is not repaid.