Which of the following is one of the conditions that must
exist for a company to recognize revenue on separate units under
a multiple-deliverables arrangement?

(a) The requirement is to identify the condition that
must be met to apply separate accounting. For a multipledeliverables
arrangement, two conditions must be met for an
item to be considered a separate unit of accounting: (1) The
delivered item has value on a stand-alone basis, and (2) if the
arrangement includes a right of return for the delivered item, the
undelivered item must be substantially in the control of the vendor.
Therefore answer (a) is correct.