Why was Apple required to spread their iPhone revenues over a two-year period?
A)Because of its newness, their returns might exceed the normal level of returns.
B)Because they were required to provide software updates over that two year period.
C)Because that was the estimated life of the iPhone.
D)Because they needed to defer revenue recognition since they had a swap program available for future models.

Question

Quizplus · Accepted Answer

Apple was required to spread their iPhone revenues over a two-year period because they were committed to providing software updates over that period, which meant they had ongoing obligations related to the sale.

Why Was Apple Required to Spread Their IPhone Revenues Over