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4. Question No. 1 What does the creation of an allocation allow you to determine? A. the ability not to revise previously reported revenue for revision, corrections, and other changes B. the fair value of each performance obligation C. the maximum amount of revenue you can recognize soonest, postponing the minimum until later D. an allocation of the expected consideration over the performance obligations as if you had sold them separately Answer: B Question No. 2 Why Is Satisfaction Method a key element of a Performance Obligation? A. because it determines whether revenue for a good or service is recognized Over Time or Point in Time B. because it calculates the amount of Total Transaction Price allocated to date C. because it calculates the percentage of Total Transaction Price allocated to date D. because it specifies whether revenue has been fully or partially recognized for a good or service Answer: A Question No. 3 What is a Standalone Selling Price (SSP)? A. the average of your bundled price B. the sum of the SSPs of the components C. the list price D. the price you would use if you sold to a customer separately Answer: D Question No. 4 In Revenue Management the Selling Amount and Allocated Amount may be different. How does Revenue Management account for this difference? A. It tracks the difference in a Discount Allocation Account at the contract line level. B. It tracks the difference in a Write-off Allocation Account at the contract level. C. It tracks the difference In a Discount Allocation Account at the contract level. D. It Tracks the difference in a Write-Off Allocation Account at the contract line level. Answer: A Question No. 5 Which two are choices for the Satisfaction Method when defining a Performance Obligation Identification Rule?

5. A. require complete B. allow partial C. allow complete D. require partial Answer: A, B

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