Nonrefundable upfront fees
A)should be recognized immediately upon receipt of payment.
B)such as activation fees for cable should be recognized as revenue immediately.
C)such as a one-time initiation fee in a health club should be recognized immediately.
D)should not be recorded as revenue at the time of payment if they are for future delivery of products and services.

Question

Quizplus · Accepted Answer

Nonrefundable upfront fees should be deferred and recognized over the period of service delivery if they relate to future obligations.

Nonrefundable Upfront Fees