Franchise Fees Are Properly Recognized as Revenue

question 16

Multiple Choice

Franchise fees are properly recognized as revenue

• A) when received in cash.
• B) when a contractual agreement has been signed.
• C) after the franchise business has begun operations.
• D) after the franchiser has substantially performed its service.

---

Definitions:

Arguments

Exchanges of divergent or opposite views, typically a series of reasons or evidence in support of and against a proposition.

Reduced

Made smaller or less in amount, degree, or size.

Work

Engaging in physical or mental activities to achieve a purpose or result, often related to earning a living or contributing to society.

Family Demands

The responsibilities and expectations placed on an individual by their family members, which can include care-taking, household duties, and emotional support.