To Satisfy a Performance Obligation Means That

question 81

Multiple Choice

To satisfy a performance obligation means that:

• A)the provider has substantially completed the service for the customer.
• B)the goods have been transferred to the customer who has assumed ownership and control over goods.
• C)the selling entity has done everything required to earn the revenue.
• D)All of the above statements are correct.

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Definitions:

Cash Flows

The complete sum of funds moving into and out of an enterprise, predominantly affecting its ability to cover short-term obligations.

Time Value

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.