Which Following Factors Are Taken into Consideration When Determining Whether

question 6

Multiple Choice

Which following factors are taken into consideration when determining whether a performance obligation has been satisfied?

• A)The entity has right to payment
• B)The customer has legal title or a service has been performed
• C)The customer has physical possession
• D)The risks and rewards of ownership have been transferred to the customer
• E)All of the above

---

Definitions:

Paraffin Bath

A therapeutic treatment using warm paraffin wax to moisturize and relieve pain in the hands and feet.

Diathermy

A type of heat therapy in which a machine produces high-frequency electromagnetic waves that achieve deep heat penetration in muscle tissue.

Rent Expense

The cost incurred by a business for the use of a property, facility, equipment, or other asset under a lease agreement, charged as an expense.

Prepaid Rent Expense

An expense account that records payments for rent made in advance of the rental period.