Which of the Following Is Not a Criterion That Indicates

question 102

Multiple Choice

Which of the following is not a criterion that indicates a performance obligation is satisfied over time?

• A) The customer receives control of a delivered product which has an expected useful life of many years.
• B) The seller's performance does not create an asset with an alternative use to the seller and the seller has a right to payment for performance completed to date.
• C) The customer simultaneously receives and consumes the benefits of the seller's performance as the seller performs.
• D) The seller's performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

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Definitions:

Cash Dividends

Profits paid out to shareholders by a corporation based on the number of shares they own.

Statement of Cash Flows

A report detailing how modifications in balance sheet accounts and earnings influence cash and cash equivalents.

Common Stock

A type of securities representing ownership in a corporation, whereby holders have voting rights and may receive dividends.

Noncash Investing

Investment activities that do not involve the immediate inflow or outflow of cash, such as acquiring assets through the issuance of equity.