Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in exchange for (a) the exclusive right to operate the only TechStop in a particular area for a five-year period, (b) the equipment necessary to distribute and repair AntonTech products, and (c) training services to be provided over a two-year period. Similar equipment and training can be purchased elsewhere. 4. AntonTech should recognize revenue for the training? a. No transaction b. No revenue c. Point in Time d. Over Time 5. What if AntonTech also charges franchisees an additional fee for ongoing services provided by the company, the additional fee be recognize as revenue? a. No transaction b. No revenue c. Point in Time d. Over Time

Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in exchange for (a) the exclusive right to operate the only TechStop in a particular area for a five-year period, (b) the equipment necessary to distribute and repair AntonTech products, and (c) training services to be provided over a two-year period. Similar equipment and training can be purchased elsewhere. 4. AntonTech should recognize revenue for the training? a. No transaction b. No revenue c. Point in Time d. Over Time 5. What if AntonTech also charges franchisees an additional fee for ongoing services provided by the company, the additional fee be recognize as revenue? a. No transaction b. No revenue c. Point in Time d. Over Time

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 13E

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Question

Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in

exchange for (a) the exclusive right to operate the only TechStop in a particular area for a five-year period, (b)

the equipment necessary to distribute and repair AntonTech products, and (c) training services

to be provided over a two-year period. Similar equipment and training can be

purchased elsewhere.

4. AntonTech should recognize revenue for the training?

a. No transaction

b. No revenue

c. Point in Time

d. Over Time

5. What if AntonTech also charges franchisees an additional fee for ongoing services provided by the company,

the additional fee be recognize as revenue?

a. No transaction

b. No revenue

c. Point in Time

d. Over Time

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