Which of the following would most likely be considered as a separate performance obligation in a franchise agreement? a. initial services required of the franchisor that are in substance activities to setup the contract b. equipment that the franchisee is required to purchase or otherwise obtain from a third-party supplier c. grant of license to use the franchisor's trademark d. activities that the franchisor is required to undertake to support the intellectual property covered in the franchise

Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle
Section: Chapter Questions
Problem 19MCQ
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Which of the following would most likely be considered as a separate performance obligation in a franchise agreement?

a. initial services required of the franchisor that are in substance activities to setup the contract

b. equipment that the franchisee is required to purchase or otherwise obtain from a third-party supplier

c. grant of license to use the franchisor's trademark

d. activities that the franchisor is required to undertake to support the intellectual property covered in the franchise

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