Chapter 8, Problem 8.1BE

Identify a Contract with a Customer. Complete the blanks in the five criteria to identify a contract with a customer.

1. 1. All parties agree to the ______ and commit to ______.
2. 2. Each party’s fights with respect to the goods or service being transferred are ________.
3. 3. Payment terms for the goods or services that are being transferred are __________.
4. 4. The contract has _______, meaning that the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract.
5. 5. It is _______ that the seller will _______ the consideration to which it is entitled in exchange for the goods or services.