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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Chapter 5, Problem 5.7BE

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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