Performance obligation: Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. Prepayments: Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer. To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

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Answer 1

Question

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

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Answer 2

Question

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

Answer 6

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

Answer 7

Chapter 5, Problem 5.5BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Prepayments:

Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.

To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - What are the five key steps a company follows to...Ch. 5 - What indicators suggest that a performance...Ch. 5 - What criteria determine whether a company can...Ch. 5 - We recognize service revenue either at one point...Ch. 5 - What characteristics make a good or service a...Ch. 5 - Prob. 5.6Q Ch. 5 - What must a contract include for the contract to...Ch. 5 - When a contract includes an option to buy...Ch. 5 - Prob. 5.9Q Ch. 5 - Prob. 5.10Q

Solution Summary: The author explains that the number of performance obligations in the implied contract is one because the customer registered the services on the website for the access of online services.

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Chapter 5 Solutions