A company must account for a contract modification as a new contract if
A. the modification adds distinct goods or services at a price that reflects their stand-alone selling price.
B. the seller has the right to receive consideration equal to the stand-alone selling price of the promised goods or services.
C. the promised goods or services are distinct and separable from other goods or services promised in the original contract.
D. the promised goods or services are distinct and the contract has commercial substance.
Answer: A
You might also like to view...
The major barriers to entry in Japan are the nontariff barriers of custom and tradition, practice, and preference
Indicate whether the statement is true or false
During which step of the segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?
A) Step 2—segment identification B) Step 3—segment attractiveness C) Step 6—segment "acid test" D) Step 1—needs-based segmentation E) Step 7—marketing-mix strategy
Which of the following helps clarify the basic operationalization of a product during product testing, such as the physical characteristics and features?
A. innovation diffusion process B. business case analysis C. beta testing D. alpha testing E. concept testing
Which of the following statements is CORRECT?
A. The capital structure that maximizes the stock price is generally the capital structure that also maximizes earnings per share. B. All else equal, an increase in the corporate tax rate would tend to encourage a company to increase its debt ratio. C. Since debt financing raises the firm's financial risk, increasing a company's debt ratio will always increase its WACC. D. Since debt is cheaper than equity, increasing a company's debt ratio will always reduce its WACC. E. When a company increases its debt ratio, the costs of equity and debt both increase. Therefore, the WACC must also increase.