Revenue Recognition

Question 1

Which condition must be present in order for the contract modification to be accounted for as a separate contract?

Answer 1

The SCOPE of the original contract increases through the addition of distinct goods or services.

Question 2

What has not been paid would be left accrued?

Answer 2

Unpaid would be accrued in the same year

Question 3

Notes payable is a ________________ liability

Answer 3

LONG TERM

Question 4

Accounts payable are typically due within _______

Answer 4

30 to 60 days