Revenue for sales-based royalty payments should be recognized
A)when the amount of sales can be determined.
B)on the date payment is received by the franchisor.
C)on the date the performance obligation is satisfied.
D)on the date the contract was signed.

Question

Quizplus · Accepted Answer

Revenue for sales-based royalty payments should be recognized when the amount of sales can be determined, as it is contingent on the sales made by the licensee.

Revenue for Sales-Based Royalty Payments Should Be Recognized