Which of the following is also known as a "cafeteria plan?"
A) employee stock purchase plan
B) employee stock ownership plan
C) flexible benefit plan
D) personal life benefit plan
E) profit sharing plan
C
Explanation: C) Flexible benefit plans are called cafeteria plans because employees are permitted to choose the benefits (much like choosing food in a cafeteria) that are most important to them, while reducing the cost of offering all benefits to all employees.
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NAICS provides common ______.
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Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company also provides consulting services and support to ensure smooth operation of the software. The total transaction price is $420,000. Based on standalone values, the company estimates the consulting services and support have a value of $120,000 and the software license has a value of $300,000. Assuming the performance obligations are not interdependent and licensed software is delivered and consulting service will be provided over 5 years, the journal entry to record the transaction includes:
a. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000. b. a credit to Service Revenue of $120,000. c. a credit to Unearned Service Revenue of $300,000. d. a credit to Sales Revenue of $420,000.