a. RealMoney.Com, a division of TheStreet Inc., provides investment advice to customers for an up c. Intuit Inc. develops tax preparation software that it sells to its customers for a flat fee. No further b. Oracle Corp. develops general ledger and other business application software that it sells to its E5-34. Explain when each of the following businesses fulfills the performance obligations implicit in the sales front fee. It provides these customers with password-protected access to its website, where t 01 Assessing Revenue Recognition Timing and Income Measurem contract and recognizes revenue. Identify any revenue measurement issues that could arise can download investment reports. RealMoney has an obligation to provide updates on its they monthly fee for customers. The customer pays an up-front fee for the right to use the software and a support services. payment is required, and the software cannot be returned, only exchanged if defective. d. Electronic Arts develops and sells computer games. The company will proVide a full refund within 24 hours after the game is first launched or within 14 days from the date of sale, if the game has been launched, After that, there is no refund. not E5-35. Constructing

a. RealMoney.Com, a division of TheStreet Inc., provides investment advice to customers for an up c. Intuit Inc. develops tax preparation software that it sells to its customers for a flat fee. No further b. Oracle Corp. develops general ledger and other business application software that it sells to its E5-34. Explain when each of the following businesses fulfills the performance obligations implicit in the sales front fee. It provides these customers with password-protected access to its website, where t 01 Assessing Revenue Recognition Timing and Income Measurem contract and recognizes revenue. Identify any revenue measurement issues that could arise can download investment reports. RealMoney has an obligation to provide updates on its they monthly fee for customers. The customer pays an up-front fee for the right to use the software and a support services. payment is required, and the software cannot be returned, only exchanged if defective. d. Electronic Arts develops and sells computer games. The company will proVide a full refund within 24 hours after the game is first launched or within 14 days from the date of sale, if the game has been launched, After that, there is no refund. not E5-35. Constructing

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

c. Intuit Inc. develops tax preparation software that it sells to its customers for a flat fee. No further
Explain when each of the following businesses fulfills the performance obligations implicit in the sales
b. Oracle Corp. develops general ledger and other business application software that it sells to its
E5-34.
a. RealMoney.Com, a division of TheStreet Inc., provides investment advice to customers for an up
front fee. It provides these customers with password-protected access to its website, where they
01
Assessing Revenue Recognition Timing and Income Measurem
contract and recognizes revenue. Identify any revenue measurement ISsues that could arise
can download investment reports. RealMoney has an obligation to provide updates on its they
customers. The customer pays an up-front fee for the right to use the software and a monthly its
support services.
payment is required, and the software cannot be returned, only exchanged if defective.
d. Electronic Arts develops and sells computer games. The company will proVide a full refund within
24 hours after the game is first launched or within 14 days from the date of sale, if the game has not
been launched, After that, there is no refund.
E5-35.
Constructing

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Please do not give solution in image format
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