On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.

On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 1QE

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