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TelCo provides a bundle service offering to a customer for £3,000 upfront. The services provided are as follows: i) Upfront advice ii) On - call advice for a 1-year period iii) Database access for a 2-year period If TelCo were to charge a separate fee for each service if sold separately the fee would be: - Upfront advice £200 On-call advice £2, 600 - Database access £800 The revenue of upfront advice that would be recorded by TelCo at the inception of the agreement is: Question 9Answer a. £1,500 b. £3,000 c. £167 d . £833

TelCo provides a bundle service offering to a customer for £3,000 upfront. The services provided are as follows: i) Upfront advice ii) On - call advice for a 1-year period iii) Database access for a 2-year period If TelCo were to charge a separate fee for each service if sold separately the fee would be: - Upfront advice £200 On-call advice £2, 600 - Database access £800 The revenue of upfront advice that would be recorded by TelCo at the inception of the agreement is: Question 9Answer a. £1,500 b. £3,000 c. £167 d . £833

FINANCIAL ACCOUNTING
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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TelCo provides a bundle service offering to a customer for £3,000 upfront. The services provided are as follows: i) Upfront advice ii) On - call advice for a 1-year period iii) Database access for a 2-year period If TelCo were to charge a separate fee for each service if sold separately the fee would be: - Upfront advice £200 - On-call advice £2, 600 - Database access £800 The revenue of upfront advice that would be recorded by TelCo at the inception of the agreement is: Question 9Answer a. £1,500 b. £3,000 c. £167 d . £833
Transcribed Image Text:TelCo provides a bundle service offering to a customer for £3,000 upfront. The services provided are as follows: i) Upfront advice ii) On - call advice for a 1-year period iii) Database access for a 2-year period If TelCo were to charge a separate fee for each service if sold separately the fee would be: - Upfront advice £200 - On-call advice £2, 600 - Database access £800 The revenue of upfront advice that would be recorded by TelCo at the inception of the agreement is: Question 9Answer a. £1,500 b. £3,000 c. £167 d . £833
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