Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the racquet store (rs) sells franchise agreements

The Racquet Store (RS) sells franchise agreements in which it charges an up-front fee of...

50.1K

Verified Solution

Question

Accounting

The Racquet Store (RS) sells franchise agreements in which it charges an up-front fee of $50,000 for assistance in setting up a store, and then a monthly fee of $1,000 for national advertising and administrative assistance. Steffi Hingis signs a franchise agreement with RS. Assume that Steffi paid the $50,000 in cash when she signed the agreement. RS can recognize revenue associated with the $50,000:

A. When Steffi signs the agreement and pays the cash.

B. As soon as RS has assisted Steffi in setting up the store.

C. Gradually as RS provides advertising and administration services.

D. Only after the store has operated long enough for the chance of business failure to be remote.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

31. The speed of college tennis player Jaron Jackson’s first serve averages 125 mph, with a...

Medical Sciences
1.2K views

Describe the ventilatory response to incremental (graded) exercise. Include in your discussion factors that contribute to...

Mechanical Engineering
1.2K views

(a) What is the significance of integration of the governing equations over a control volume during...

Physics
1.2K views

Consider Fraunhoffer diffraction pattern obtained with a single slit illuminated at normal incidence At the...

Geometry
1.2K views

Move AA B C so it is a transformation of AABC according to the rule...

Basic Math
1.2K views

1 2 C 4 Consider a regular hexagon with each side of 2 cm shown...

Algebra
1.2K views

Find the product of the following 2 14x 45 3x 2x 1 6x 3x 2x...

Algebra
1.2K views

5 How many different re Irsive pattern can you find with 4 and 7 as...

Accounting
1.2K views

Break-even sales under present and proposed conditions Portmann Company, operating at full capacity,...

Accounting
1.2K views

Exercise 6-2 (Algo) Service revenue [LO6-3] Ski West, Inc., operates a downhill ski area near...

Finance
1.2K views

Tortuga Industries has the following financial data: total asset 2.0 turnover gross profit margin 25%...

Finance
1.2K views

Investment = purchases of new plant and equipment investment= purchases of new plant and equipment...