If a Contract Involves a Significant Financing Component

Multiple Choice

If a contract involves a significant financing component

A) the time value of money is not required to determine transaction price if the payment is more than a year after the transfer occurs.
B) the transaction amount should be based on the current sales price of goods or services.
C) interest is not accrued as a result of the financing component.
D) the time value of money is used to determine the fair value of the transaction.