Knowledge Check 01 Which of the following statements about franchises are true? (Select all that…

Knowledge Check 01 Which of the following statements about franchises are true? (Select all that apply.) Check All That Apply A franchise involves a license to use intellectual property. | A franchise involves initial sales of products and services as well as ongoing sales of products and services. Each part of the franchise arrangement must be evaluated to identify the performance obligations. In a franchise arrangement, a franchisee grants to the franchisor the right to sell the franchisor’s products and use its name. Knowledge Check 01 Which of the following statements about the definition

»Knowledge Check 01 Which of the following statements about franchises are true? (Select all that apply.) Check All That Apply A franchise involves a license to use intellectual property. | A franchise involves initial sales of products and services as well as ongoing sales of products and services. Each part of the franchise arrangement must be evaluated to identify the performance obligations. In a franchise arrangement, a franchisee grants to the franchisor the right to sell the franchisor’s products and use its name. Knowledge Check 01 Which of the following statements about the definition of the word “probable” are true? (Select all that apply.) Check All That Apply 0 IFRS defines “probable” as a likelihood that is greater than 25%. 0 The IFRS definition of the word “probable” is higher than the definition in U.S. GAAP. 0 The U.S. GAAP definition of the word “probable” implies a relatively high likelihood of occurrence. 0 U.S. GAAP defines “probable” to mean an amount can reasonably be expected or believed on the basis of available evidence or logic but is neither certain nor proved. Knowledge Check 01 Which of the following would indicate that control has passed from the seller to the customer? (Select all that apply.) Check All That Apply The asset is warehoused by a seller-affiliated third party. Legal title to the asset has passed to the customer. The customer has assumed the risks and rewards of ownership of the asset. The customer has an obligation to pay the seller. Knowledge Check 01 Which of the following are criteria that must be met before revenue can be recognized over time? (Select all that apply.) Check All That Apply 0 The customer consumes the benefit of the seller’s work as it is performed. 0 The customer controls the asset as it is created. 0 The seller is creating an asset that has an alternative use to the seller, and the seller has the legal right to receive payment for progress to date. 0 The seller is creating an asset that has no alternative use to the seller, and the seller has the legal right to receive payment for progress to date.

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