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Single choice 36) Why might a company that supplies cleaning and catering services over the term of a two year contract be eligible to recognize
Single choice 36) Why might a company that supplies cleaning and catering services over the term of a two year contract be eligible to recognize revenue progressively over the term of that contract? There is simultaneous receipt and consumption of benefit over the two year term This represents work in progress controlled by the customer The service has no alternative use and has created an enforceable right of payment The contract is a short-term contract, hence this treatment is most prudent
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