Which of the following types of service transactions is most likely to require the proportional performance method of revenue recognition based on the seller's direct costs to perform each act?

a. Processing of monthly mortgage payments by a mortgage banker
b. Providing lessons, examinations, and grading by a correspondence school
c. Providing maintenance services on equipment for a fixed periodic fee
d. Delivering freight (by a trucking firm)


B

Business

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Indicate whether the statement is true or false

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