Revenue from nonrefundable up-front fees
A)can never be recognized.
B)must be recognized immediately.
C)is not allowed under GAAP.
D)is usually deemed to be earned as the services are delivered over the full term of the service contract.

Question

Quizplus · Accepted Answer

Revenue from nonrefundable up-front fees is usually deemed to be earned as the services are delivered over the full term of the service contract. This means that the revenue cannot be recognized immediately and must be recognized over the duration of the service contract. This is in accordance with GAAP (Generally Accepted Accounting Principles). Therefore, options A, B, and C are incorrect.

Revenue from Nonrefundable Up-Front Fees