When a revenue arrangement involves more than one performance obligation, which of the following conditions must be evaluated? O whether each product or service involved is distinct within the contract O whether revenue recognition is simultaneous for all products or services O whether the promises involved with each product or service are explicit or implicit O whether customary business practice dictates that the products and services be provided together

When a revenue arrangement involves more than one performance obligation, which of the following conditions must be evaluated? O whether each product or service involved is distinct within the contract O whether revenue recognition is simultaneous for all products or services O whether the promises involved with each product or service are explicit or implicit O whether customary business practice dictates that the products and services be provided together

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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When there are potential multiple obligations within a single contract, and the products or services are highly interdependent and interrelated, then they are Question 1 options: sold separately. combined and reported as a single performance obligation. combined under a new contract. accounted for as separate performance obligations.
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