In a Perpetual Inventory System,multiple Performance Obligations ________

question 58

Multiple Choice

In a perpetual inventory system,multiple performance obligations ________.

• A) represent one distinct performance obligation
• B) may require the creation of an asset account, Unearned Revenue
• C) result in revenue being recorded when the separate performance obligations are identified because there is a binding contact
• D) require the company to allocate the transaction price to each performance obligation

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Definitions:

Punctuation

Process of making sense out of stimuli by grouping, dividing, organizing, separating, and categorizing information.

Thin Slicing

Observing a small sample of someone’s behavior and then making a generalization about what the person is like, based on that sample.

Predicted Outcome Value Theory

A theory in interpersonal communication suggesting the initial interactions between individuals are used to predict the future value of the relationship, influencing whether interactions will continue.

Causal Attribution Theory

A concept in social psychology that examines how people determine the causes of behavior or events, attributing them to internal dispositions or external situations.