Question
Under ASC Topic 606 for revenue recognition, which of the following factors is not an indicator of the principal/agent determination? Multiple Choice Inventory risk. Control
Under ASC Topic 606 for revenue recognition, which of the following factors is not an indicator of the principal/agent determination?
Multiple Choice
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Inventory risk.
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Control of prices of the goods or services.
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Shipping terms.
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Credit risk.
Which of the following statements is not true regarding revenue recognition regarding gift cards?
Multiple Choice
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It is typical that a portion of gift card sales will go unused by customers.
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The amount received from the sale of gift cards is required to be recognized as revenue when the gift cards are sold.
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"Breakage" can only be recognized as revenue to the extent that it is probable a reversal will not be necessary.
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"Breakage" refers to the unused portion of gift card balances.
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