A Company Has Satisfied Its Performance Obligation When the

question 51

Multiple Choice

A company has satisfied its performance obligation when the

• A)company has received payment for goods or services.
• B)company has significant risks and rewards of ownership.
• C)company has legal title to the asset.
• D)company has transferred physical possession of the asset.

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Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Fuel

A substance used to produce energy through chemical or nuclear reactions, especially for powering engines or generating electricity.

Macronutrient

A type of nutrient required in large amounts in the diet, which includes proteins, fats, and carbohydrates.

Calories

A measure of energy expenditure, with one calorie defined as the amount of heat needed to raise the temperature of one kilogram of water by one degree Celsius.