Identifying the Reporting of Contract Revenues and Costs in Financial Statements Indicate how each of the following items would accounted for in the financial statements of a seller: (1) expense on the income statement, (2) asset on the balance sheet, or (3) liability on the balance sheet. ♦ ♦ ♦ ♦ ♦ ◆ a. Costs to obtain a three-year contract that are expected to be recovered over the contract term. b. Direct costs to fulfill a three-year contract's performance obligations that are expected to be recovered over the contract term. c. Receipt of a down payment on a contract expected to be satisfied in two months. d. Unconditional right to consideration. e. Conditional right to consideration. f. Costs to obtain a two-year contract that are not expected to be recovered over the contract term.

A system contains many processes. Three common processes that are “grouped” together are transaction corrections, adjustments, and cancellations. These three elements work to properly serve customers. Imagine a system that allows you to register for a class online. The online system must give you a way to correct any errors you made, such as registering for the wrong class. This would be a transaction correction. The system should also allow you to make adjustments, such as adding or dropping classes. Finally, the system should allow you to make cancellations, such as cancelling the registration process entirely. Notice that all three of these processes, correction, adjustment, and cancellation, work together to provide you with one service, which is registering for classes. What type of requirements are transaction corrections, adjustments, and cancellations? Select one. Question 4 options: A Functional Requirements B Nonfunctional Requirements

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