Allocating a transaction price to multiple performance obligations includes which of the following steps: O Complete each performance obligation before recognizing any revenue from the contract. O All of these choices are correct. O Consolidate the components of the contract to two performance obligations because a contract should not have more than two performance obligations. O Allocate the transaction price based on relative fair values.The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).

Allocating a transaction price to multiple performance obligations includes which of the following steps: O Complete each performance obligation before recognizing any revenue from the contract. O All of these choices are correct. O Consolidate the components of the contract to two performance obligations because a contract should not have more than two performance obligations. O Allocate the transaction price based on relative fair values.The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Under assimilation costing, benefit is learned a) based on distinction among deals and absolute expense. b) By calculation according to wanted pace of benefit on deals or cost c) Both an and b d) None of the abovementioned.
Utility refers to the: Question 55 options: usefulness of a product extent to which a product can be used as a capital resource relative scarcity of a product opportunity cost of a product satisfaction that a customer derives from a good or service
Select Among the choices, this transfer prices basis is considered as the most inferior one: a. variable cost transfer pice b. full cost transfer price c. negotiatied transfer price d. external market transfer price e. dual transfer price
Prove that Homotheticity is required for the method of representative agent method to find the asset pricing. Otherwise, you have to use upper convultion to find the representative agent utility
How will you differentiate contract of sale from contract to sell?
Under the completed-contract method, Question 16 options: a revenue, cost, and gross profit are recognized at the time the contract is completed. b revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed. c revenue, cost, and gross profit are recognized during the production cycle. d None of these answers are correct.
The objective of profit maximization should be constrained by the requirement thatprofits be achieved througha. legal means only.b. ethical means only.c. any means possible.d. both legal and ethical means.e. None of these
When the entity select the amount that is most likely to be received considering the range of possible amounts. Based on this information, the method that entity should use to estimate the variable consideration is: Select one: a. The expected value approach b. Allocation approach c. None of the given choices d. Most likely amount approach
Please answer questions A, B and C. thank you
Statement I: IFRS 15 prescribes specific estimation techniques for variable consideration and only permits variable amounts to be included to the extent that it is probable that the revenue will not reverse.Statement Il: Transaction price (at inception) should be allocated to all the performance obligations in the contract in proportion to the cost of each performance obligation. • True, True • True, False • False, False • False, True
For contracts which are very near to completion, the profit is ascertained by the formula- a.Estimated profit x work certified/contract price b.Estimated profit x work certified/contract price x cash received/work certified c.Estimated profit x work certified/contract price x cost of work/total cost to date d.2/3 x Notional profit x cash received/work certified.
KINDLY ANSWER WITH EXPLANATIONS.