6. A product and service are bundled together and sold to customers for $450. The fair values of the product and service are $350 and $150 respectively. Under the relative fair value method, how much would be allocated to the product? a. $300 b. $150 c. $315 d. $350 7. Where there are potentially multiple performance obligations within a single contract, if products or services are interdependent and interrelated, they must be a. combined under a new contract. b. combined and reported as a single performance obligation. c. accounted for as multiple performance obligations. d. sold separately. 8. When a contract becomes unprofitable to an entity, this is called a(n) a. uncompleted contract. b. zero-profit contract. C. unenforceable contract. d. onerous contract. 9. The appropriate approach to recognize long-term contract revenue under ASPE is a. asset-liability approach to revenue recognition. b. earnings approach to revenue recognition. c. earned and realized approach to revenue recognition. d. cash-based approach to revenue recognition. 10. Under IFRS, where a right to return exists, a. sales returns and allowances are recognized as contra accounts to Revenues & Accounts Receivable. b. a refund liability is recognized. c. this right does not need to be disclosed or accrued anywhere. d. this right is disclosed in the financial statements; no accrual necessary