1. Which of the following statements is not true regarding transactions involving intellectual property?

a. The revenue recognition approach depends on whether the transaction is considered a sale or a license.

b. If a contract is considered a license, the firm must determine if the license is a distinct performance obligation.

2. Under ASC Topic 606, which of the following statements is not true regarding the use of practical expedients in applying the revenue recognition model?

a. A firm is not required to adjust the transaction price for a significant financing component if at the contract inception, the period between the payment and the transfer of goods or services is expected to be a year or less.

b. One expedient is to use a portfolio approach to numerous contracts with similar characteristics.

c. A firm can file an application to use a practical expedient on a large contract if it is under severe time pressure.

d. Determining the use of an expedient is dependent on wheather there wouldnot be a material difference in the financial statements from a more vigurous application of the standard.

Under GAAP accounting standards- Revenue recognition, this is Analysis of financial statatements