Which of the following conditions must be met for a good or service in a contract to be considered distinct and identified as a separate performance obligation? A. A separate contract is made for each good or service. B. The contract lists a stand-alone price for each good or service. C. The customer can use the good or service on its own or together with resources that are readily available. D. The goods or services in the contract are highly interdependent.
Which of the following conditions must be met for a good or service in a contract to be considered distinct and identified as a separate performance obligation? A. A separate contract is made for each good or service. B. The contract lists a stand-alone price for each good or service. C. The customer can use the good or service on its own or together with resources that are readily available. D. The goods or services in the contract are highly interdependent.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 11GI
Related questions
Question
Which of the following conditions must be met for a good or service in a contract to be considered distinct and identified as a separate performance obligation?
|
A.
|
A separate contract is made for each good or service. | |
|
B.
|
The contract lists a stand-alone price for each good or service. | |
|
C.
|
The customer can use the good or service on its own or together with resources that are readily available. | |
|
D.
|
The goods or services in the contract are highly interdependent. |
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