Which of the Following Would Be an Example of Multiple

question 64

Multiple Choice

Which of the following would be an example of multiple performance obligations?

• A) Customer accepts delivery for a new outdoor spa tub.
• B) Contractor is hired to fix an overhead door and replaces several parts including springs and tracks.
• C) Customer purchases a new gas range and two-year extended warranty.
• D) Customer purchases a family pack of tickets to the Wolves football team that includes multiple tickets for the same game.

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Definitions:

Partners

Individuals or entities engaged in business together under a formal agreement to share profits and losses.

Co-own

To have joint ownership or share the possession of a property or item with one or more parties.

Voluntary Association

An organization created by individuals who voluntarily unite to pursue a common interest or goal without necessarily seeking profit.

Business Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.