A Contract Asset

question 6

Multiple Choice

A contract asset

• A) represents the seller's performance obligation.
• B) arises when a customer's payment of consideration occurs prior to the seller's performance under the contract.
• C) represents the seller's unconditional right to receive consideration from a customer.
• D) arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time.

---

Definitions:

Rare Antique Vase

A unique and old decorative container made of material like ceramic, metal, glass, or porcelain with high historical or collectible value.

Indefinite Future Time

A period that has no specified end date.

Unconditional Promise

An unconditional promise is a firm commitment or pledge made by one party to another, without any stipulations or conditions attached.

Check-clearing Process

The method through which banks collect and settle the amount of a check, transferring funds from one account to another.