According to FASB, Initial Franchise Fees Should Be Recognized as Income

question 37

Multiple Choice

According to FASB, initial franchise fees should be recognized as income when:

• A)the franchiser has substantially performed or satisfied all material services and conditions.
• B)the franchiser has collected the majority of fee in cash.
• C)the franchisee shows the ability to pay the fee.
• D)the franchiser bills the franchisee.

---

Definitions:

State Universities

Public universities funded and operated by the government of a state, offering higher education to its residents.

Constitutional Status

The designation of legal and societal standing as defined by the constitution, which specifies the structure, powers, and rights within a nation.

Physician-Assisted Suicide

A practice wherein a physician provides a patient, at the patient's request, with the means to end their own life, often under circumstances of terminal illness and severe pain.

Supreme Court

The Supreme Court is the highest federal court in the United States, holding final appellate authority over all federal and state court cases that involve a point of constitutional or federal statutory law.