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

---

Definitions:

Pharmaceutical Companies

Businesses involved in the research, development, production, and marketing of drugs and medications for medical use.

Automobile Manufacturers

Companies engaged in designing, producing, and selling motor vehicles.

Dry Cleaners

A business that cleans clothing, textiles, and garments using a chemical solvent rather than water, often for items that cannot withstand the rigors of standard home laundering.

Computer-Integrated Manufacturing

A system of manufacturing in which all the processes are controlled by computers, resulting in reduced manual intervention and increased efficiency.