The new ASC Topic 606 for revenue recognition:

Multiple Choice

addresses when and how revenue should be recognized in contracts that provide both goods and services to customers.

eliminates both the percentage-of-completion method and the installment sales method of revenue recognition.

will require companies to recognize a net liability contract position on all new contracts; revenue will then arise from increases in the net contract position over the life of the contract.

is more rules based than are existing standards.