In Which Circumstances Arrangements with Customers Are Contracts Within the Scope

question 6

Multiple Choice

In which circumstances arrangements with customers are contracts within the scope of IFRS 15?
I. the contract might be approved by all parties in writing, or in accordance with other customary business practices,
II. the parties are committed to carrying out their respective obligations;
III. the entity cannot identify the rights of each party with regard to the goods or services that are to be transferred under the contract;
IV. the entity cannot identify the payment terms for the goods or services to be transferred;
V. the entity has completed performing all of its obligations under the contract and has received all, or substantially all, of the consideration promised by the customer.

• A) I., II. and III.
• B) II. and V.
• C) I., II. and IV.
• D) None of the above

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Definitions:

Traits

Observable characteristics of an organism, determined by genetics and environmental influences, including physical appearance and behavior.

Double-ringed Molecule

A term describing molecules composed of two interconnected ring structures, typically associated with the structure of nucleotides in DNA and RNA.

Guanine

A nitrogenous base that is one of the five main nucleobases found in the nucleic acids DNA and RNA, characterized by a double ring structure.

DNA Sequence

Order of nucleotide bases in a strand of DNA; genetic information.