Question

A company has a performance obligation when it agrees to perform a service for a customer...

A company has a performance obligation when it agrees to

perform a service for a customer and receives cash payment.
sell a product to a customer after receiving payment.
perform a service or sell a product to a customer.
none of the answer choices are correct.

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Answer #1

Solution:

A company has a performance obligation when it agrees to "perform a service or sell a product to a customer."

Hence 3rd option is correct.

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