Question

Which of these is true of the transaction price? It must be clearly specified by the...

Which of these is true of the transaction price?

It must be clearly specified by the contract for each separate performance obligation.
It is the amount of consideration a company expects a customer to grant them.
It excludes discounts, coupons, rebates, penalties, or nonrefundable fees.
It includes only cash and cash equivalents and does not include noncash consideration.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
ANSWER:It must be clearly specified by the contract for each separate performance obligation.
The transaction price is defined as the total amount of consideration a seller is legally entitled to, for transferring/exchanging the agreed goods or services.
The so-determined transaction price is allocated between different performance obligations outlined in the sale-contract
As such,these individual allocated amounts will be recognized as revenue as & when the respective performance obligation is fulfilled.
It includes noncash consideration also .at its fair value or its stand-alone selling price.
It includes discounts, coupons and rebates as variable form of consideration.
It is fixed by the selling company
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True or False 1. A company makes a credit sale for $500. Future collection from the...
True or False 1. A company makes a credit sale for $500. Future collection from the customer is probable. The company will not record revenue from the transaction until it collects cash from the customer. 2. Credit sales involve benefits and costs. A benefit of selling on credit is that the seller makes it more convenient for customers to purchase goods and services. A cost of selling on credit is that there is a delay in collecting cash from customers....
Harlan Venture Inc. (HV) operates a restaurant named Harlan's in Toronto. The shareholder, Stephen Painter, is...
Harlan Venture Inc. (HV) operates a restaurant named Harlan's in Toronto. The shareholder, Stephen Painter, is concerned whether the system and controls in place at the restaurant are appropriate to monitor and control the operations of the restaurant and to make sure that employees don't steal. He provides the following information: Restaurant operations The restaurant manager's duties include looking after reservations, seating customers, and managing the restaurant's operations. Servers take the customer orders and enter them into a system that...
Form 10-K of Costco Wholesale Corporation for fiscal year ended August 28, 2016, includes the following...
Form 10-K of Costco Wholesale Corporation for fiscal year ended August 28, 2016, includes the following footnote (excerpted): Revenue Recognition The Company generally recognizes sales, which include shipping fees where applicable, net of returns, at the time the member takes possession of merchandise or receives services. When the Company collects payments from members prior to the transfer of ownership of merchandise or the performance of services, the amounts received are generally recorded as deferred sales, included in other current liabilities...
Martinez Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing...
Martinez Appliance Co. manufactures low-price, nofrills appliances that are in great demand for rental units. Pricing and cost information on Martinez’s main products are as follows. Item Standalone Selling Price (Cost) Refrigerator $510 ($270 ) Range 570 (280 ) Stackable washer/dryer unit 690 (400 ) Customers can contract to purchase either individually at the stated prices or a three-item bundle with a price of $1,810. The bundle price includes delivery and installation. Martinez also provides installation (not a separate performance...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the...
3.When closing entries are made:Immersive Reader (1 Point) All ledger accounts are closed to start the new accounting period. All real accounts are closed but not the nominal accounts. All balance sheet accounts are closed. All temporary accounts are closed but not the permanent accounts. All permanent accounts are closed but not the nominal accounts. 4.A wholesaler is an intermediary that buys products from manufacturers or other wholesalers and sells them to consumers.Immersive Reader (1 Point) True False 5.The Merchandise...
Which architectural pattern is most appropriate for the following multi-user, web-based system for providing a film...
Which architectural pattern is most appropriate for the following multi-user, web-based system for providing a film and photograph library?(1 Point) Please read textbook Chapter 6.3 Architectural Patterns MVC Pattern which separates presentation and interaction from the system data Layered architecture which organizes the system into layers, with related functionality associated with each layer Repository architecture - all data in a system is managed in a central repository that is accessible to all system components. Components do not interact directly, only...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell Boeing V-22 Program, a strategic alliance between Bell Helicopter, a Textron Company, and the Boeing Company,1,2 announced the V-22 Osprey tiltrotor will be featured at the Dubai International Air Show in the United Arab Emirates (UAE) from November 13 to 17, 2011. The Air Show, held biennially, is organized in cooperation with the government of Dubai, the Department of Civil Aviation, and Dubai International...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT