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Mamont248 [21]
3 years ago
5

For contracts that include more than one separate performance obligation: Multiple Choice Revenue is recorded over time at the f

air value of each performance obligation. Revenue is recognized in the amount of the contract price on the date the last separate performance obligation is satisfied. The contract price is allocated to each performance obligation in proportion to the obligations' stand-alone selling prices. Revenue is recognized in the amount of the contract price on the date the contract is signed.
Business
1 answer:
Talja [164]3 years ago
7 0

Answer:

The contract price is allocated to each performance obligation in proportion to the obligations' stand-alone selling prices.

Explanation:

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Simply stated, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

In financial economics, an option can be defined as a contract availing the buyer (owner) of an option the absolute right but not an obligation, to call (buy) or put (sell) a given amount of an asset at specific price (amount of money) at a specific period of time in the future. Generally, options are bought and sold through retail brokers. When a price is stated on an option it is referred to as the strike price.

Hence, for contracts that include more than one separate performance obligation, the contract price is allocated to each performance obligation in proportion to the obligations' stand-alone selling prices.

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