Question

The new ASC Topic 606 for revenue recognition:
Multiple Choice:
O addresses when and how revenue should be recognized in contracts that provide both goods and services to customers.
O will require companies to recognize a net liability contract position on all new contracts; revenue will then arise from increases in the net contract position over the life of the contract.
O is more rules based than are existing standards.
O eliminates both the percentage-of-completion method and the installment sales method of revenue recognition.

Answer 1

Answer:

addresses when and how revenue should be recognized in contracts that provide both goods and service to customers.

Explanation:

ASC 606 is a new standard that provides guidance on revenue recognition to the companies that provide goods and services to its customers. This standard is for both public and private entities. Earlier there were some variations in the revenue recognition process across different companies. The new standard has now simplified standardization in financial reporting.