Question
The residual approach to allocate transaction prices to multiple performance obligations in a contract is appropriate when: Multiple Choice None of the goods and services
The residual approach to allocate transaction prices to multiple performance obligations in a contract is appropriate when:
Multiple Choice
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None of the goods and services included in the contract are not sold on a stand-alone basis.
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None of the answer choices are correct.
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The stand-alone price of all of the goods or services is known.
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The stand-along price of one or more of the goods or services is highly variable or uncertain.
3. A patient of Dr. Jones presents his Medicare card after his appointment. The total charge for the services was $100; however, Medicare will pay only $60 for this service and the patient is to pay $20. Acceptance of the patients Medicare insurance creates a contract:
Multiple Choice
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for payment of $60 and a price concession of $40.
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for $20 and an $80 discount or price concession.
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for payment of $100, regardless of what Medicare will pay.
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for payment of $80 and a $20 discount or price concession.
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