When Multiple Performance Obligations Exists in a Contract, They Should

question 40

Multiple Choice

When multiple performance obligations exists in a contract, they should be accounted for as a single performance obligation when

• A)each service is interdependent and interrelated.
• B)the performance obligations are distinct but interdependent.
• C)the product is distinct within the contract.
• D)determination cannot be made.

---

Definitions:

Endothelial Cells

Cells that constitute the lining of the inner surfaces of lymphatic and blood vessels, creating a barrier between the blood or lymph flowing within the lumen and the exterior of the vessel wall.

Capillary

The smallest blood vessels in the body's circulatory system, connecting arterioles to venules and facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.

Arteriole

Minute artery with all three tunics that transports blood to a capillary.

Venule

Minute vein, consisting of endothelium and a few scattered smooth muscles, that carries blood away from capillaries.