On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.
On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end.
One performance obligation, and $9,600 license revenue should be recognized in 20X1.
Two performance obligation, and $9,600 license revenue should be recognized in 20X1.
One performance obligation, and $3,200 license revenue should be recognized in 20X1.
Two performance obligation, and $3,200 license revenue should be recognized in 20X1.
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