If a license is acquired to use intellectual property for a 5-year period, revenue always is recognized at the point in time the customer begins to benefit from the license.

Question

Quizplus · Accepted Answer

Revenue recognition for a license occurs over the term of the agreement, not just at the beginning when the customer starts to benefit. Therefore, revenue would be recognized over the 5-year period of the license.

If a License Is Acquired to Use Intellectual Property for a 5-Year