. An entity has agreed to a three-year contract with a customer. Recognizing revenue from long-term contracts over a period of time is not required when A. The customer consumes the performance obligation as it is being delivered. B. The customer has direct use of the performance obligation. C. The customer has control over the performance obligation while it is being created. D. The entity has no alternative use for the performance obligation

. An entity has agreed to a three-year contract with a customer. Recognizing revenue from long-term contracts over a period of time is not required when A. The customer consumes the performance obligation as it is being delivered. B. The customer has direct use of the performance obligation. C. The customer has control over the performance obligation while it is being created. D. The entity has no alternative use for the performance obligation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

. An entity has agreed to a three-year contract with a customer. Recognizing revenue from long-term
contracts over a period of time is not required when
A. The customer consumes the performance obligation as it is being delivered.
B. The customer has direct use of the performance obligation.
C. The customer has control over the performance obligation while it is being created.
D. The entity has no alternative use for the performance obligation

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