Revenue from a contract with a customer
a. is recognized when the customer receive the rights to receive consideration.
b. is recognized even if the contract is still wholly unperformed.
c. can be recognized even when a contract is still pending.
d. cannot be recognized until a contract exists.
A company must account for a contract modification as a new contract if
a. Goods or services are interdependent on each other.
b. The promised goods or services are distinct.
c. The company has the right to receive consideration equal to standalone price.
d. Goods or services are distinct and company has right to receive the standalone price.
When multiple performance obligations exists in a contract, they should be accounted for as a single performance obligation when
a. each service is interdependent and interrelated.
b. both performance obligations are distinct but interdependent.
c. the product is distinct within the contract.
d. determination cannot be made.