Which of the following is not true about accounting for revenue from franchise arrangements?
A) Franchise arrangements often include a performance obligation for a license as well as for delivery of goods or services.
B) Franchise arrangements typically include one or more performance obligations for which revenue is recognized at a point in time.
C) Franchise arrangements typically include one or more performance obligations for which revenue is recognized over a period of time.
D) Franchise arrangements typically include one performance obligation because the goods or services included in the arrangement are not separately identifiable.

Question

Quizplus · Accepted Answer

Franchise arrangements typically include multiple performance obligations because the goods or services included in the arrangement are both capable of being distinct and are separately identifiable.

Which of the Following Is Not True About Accounting for Revenue