Read & Interact Chapter 3g

.docx
School
Georgia Piedmont Technical College **We aren't endorsed by this school
Course
ACCT 370
Subject
Accounting
Date
Nov 5, 2023
Pages
2
Uploaded by maliburenee14 on coursehero.com
This is a preview
Want to read all 2 pages? Go Premium today.
Already Premium? Sign in here
A customer option s generally considered a separate performance obligation under which of the following scenarios? The customer option is listed as a separate item on the invoice provided to the customer. 'The customer option contains rights to purchase additional goods or services at their usual prices. The customer option contains valuable rights the customer could not have otherwise obtained The customer option contains valuable rights the customer also could have obtained without entering into the contract Correct Answer The customer option contains valuable rights the customer could not have otherwise obtained. True or false: An agent may recognize revenue when ts obligation to the principal is complete, even if the principal has not yet fulflled ts obligation to its customer. © g False Reason: From the agent's perspective, ts customer is the principal and the agent may recognize revenue once the service has been provided and the principal has obtained the benefit Correct Answer True Which of the following statements apply to a right of return? © Due to the conservatism principal, cost of goods sold is not reduced when there is a right of retur, even though revenue is reduced Revenue may not be recognized for the portion of a transaction where a refund is expected to made for a return Aright of retum leads to a variable consideration analysis Correct Answer Aliability is recognized for the estimated amount to be refunded. Revenue may not be recognized for the portion of a transaction where a refund is expected to made for a return Aright of retum leads to a variable consideration analysis.
True or false: A significant financing component can occur even when the performance obligation is satisfied at the same time payment is made. True Reason: A significant financing component arises only when the timing of payment differs from when the performance obligation is satisfied False ) Correct Answer False
Why is this page out of focus?
Because this is a Premium document. Subscribe to unlock this document and more.
Page1of 2
Uploaded by maliburenee14 on coursehero.com