Under FASB ASC 606, When Multiple Performance Obligations Exist in a Contract

question 43

Multiple Choice

Under FASB ASC 606, when multiple performance obligations exist in a contract, they should be accounted for as a single performance obligation when

• A) Each service is interdependent and interrelated
• B) Both performance obligations are distinct but interdependent
• C) The product is distinct within the contract
• D) Determination cannot be made

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Definitions:

Range

In statistics, range refers to the difference between the highest and lowest values in a data set.

Class Intervals

The range of values into which data points in a dataset are grouped for the purpose of creating a frequency distribution.

Frequency Distribution

A statistical representation showing the number of times each value appears in a dataset, often visualized as a table or graph.

National Counseling Exam

A certification examination for counselors in the United States, assessing knowledge and skills required for effective counseling practice.