Answer
a. This recognition that ensues in the aftermath of cash sales is apposite because, at such time, the publisher has satisfied the performance obligation that permits the acknowledgement of cash revenue.
b. This recognition that transpires after publication is not appropriate. Publication only does not constitute the accomplishment of a performance obligation.
c. The recognition that takes place over time is ideal because it aligns with the provisions of the revenue recognition principle such that the recognition follows completed publication and delivery (these makeup binding performance obligations).
Work Step by Step
N/A
