Which of the Following Is Not True Regarding Performance Obligation

question 2

Multiple Choice

Which of the following is not true regarding performance obligation?

• A)The amount of revenue recognized would be the amount of consideration promised by the customer in exchange for the performance obligation
• B)Most sales and service contracts consists of a single performance obligation.
• C)A contract may consist of several performance obligations.
• D)The entity has right to payment determines a performance obligation has been satisfied.

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Definitions:

Manager Compensation

entails the payment and benefits received by a manager, including salary, bonuses, and incentives.

Quants

Professionals who specialize in quantitative analysis, often employed in finance to manage and model financial risks.

Cost Centers

Units or divisions within a business to which costs can be allocated for accounting and management purposes.

Divisional Manager

A divisional manager oversees a specific section or division within a larger organization, responsible for its performance, strategy, and management.