When does a company satisfy a performance obligation? Select one: a. When you receive full payment...
When does a company satisfy a performance obligation?
Select one: a. When you receive full payment from customers for the goods or services you sold.
b. When you transfer control of the goods or services to your customers.
c. When the monetary amount (price or amount) of the transaction or contract is determined.
d. From the moment you receive a partial payment in exchange for goods or services.
Homework Answers
|
Option B is the answer A company is deemed to have satisfied a performance obligation when it delivers/provides the promised goods/services. It can be done at a specified point in time or over the periods. In other words, performance obligation is met when the control of Goods is passed on to a customer. Thank you |
Add Answer to:
When does a company satisfy a performance obligation?
Select one: a. When you receive full payment...
The general principle of income recognition establishes that companies recognize income when Select one: a. Control...
The general principle of income recognition establishes that companies recognize income when Select one: a. Control of the goods or services is transferred to customers for the amount that the company expects to be entitled to receive in exchange for those goods or services. b. goods or services are transferred to the customer and payment is received. c. the goods or services are transferred to the customer in a transaction between related parties. d. the earnings process is nearly complete...
Print Platon Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership in markets and...
Print Platon Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership in markets and sells the vehicles to real customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone seling price of a vehicles 130,000 and the standalone selling price for the annual maintenance contract is 3500 During October 2020, Valur Dealership Inc sold vehicles for 530,250 per vehicle, each with a...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
QUESTION 2 (IFRS 15) (10) Part a. A construction company enters into a contract with a...
QUESTION 2 (IFRS 15) (10) Part a. A construction company enters into a contract with a customer to supply a new building. Control over the completed building will pass to the customer in two years (the contractor's performance obligation will be satisfied at a point in time). The contract contains two payment options. Either the customer can pay $ 5 million in two years when it obtains control of the building, or the customer can pay $ 4 million on...
2. In the receipts journal, once we select the customer we are not required to enter...
2. In the receipts journal, once we select the customer we are not required to enter - a. the payment amount b. the original amount c. the date of payment d. we need to enter all the above details 3. The purchases journal may be used for the following - a. credit or pay later purchase transactions b. purchase transactions paid by cash c. purchase transactions paid by cheque d. all of the above 4. To correct a general journal...
Please help me, Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing...
Please help me, Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically: MM a $1M, build $500K, build a$250K. amounts MM to the are not is, independently other a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at mid-point, the app is downloaded...
Really Nice Company Pte Ltd (RNC), a non-GST registered company, manufactures and markets computer hardware, middleware...
Really Nice Company Pte Ltd (RNC), a non-GST registered company, manufactures and markets computer hardware, middleware and software, and provides hosting and consulting services in areas of mainframe computer. On 1 September 2017, RNC entered into a 36-month InfoSphere Information Server (IIS) contract with a Singapore-based internet search provider. RNC’s financial year ends on 31 December. The terms of the contract are as follows: Monthly server consulting and maintenance fixed fee: $5,500 (to be billed monthly) A complimentary IIS computer...
On January 1, 2020, Flounder Co. enters into a contract to sell a customer a wiring...
On January 1, 2020, Flounder Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,900. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Flounder identifies two performance obligations and allocates $1,160 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...
On January 1, 2020, Novak Co. enters into a contract to sell a customer a wiring...
On January 1, 2020, Novak Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,800. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Novak identifies two performance obligations and allocates $1,120 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...
Print Platon Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership in markets and sells the vehicles to real customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone seling price of a vehicles 130,000 and the standalone selling price for the annual maintenance contract is 3500 During October 2020, Valur Dealership Inc sold vehicles for 530,250 per vehicle, each with a...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
On December 1, 2019, Coburn Consulting Ltd. signed a contract with Burke Inc., which obligated Coburn to provide Burke with 16 hours of consulting services per month from January through December of 2020. The contract requires Burke to pay a total of $67,200 for these services, with payments of $5,600 due at the end of each month. Coburn has provided similar services to Burke in the past and has always collected its fees on a timely basis. Requirement Using IFRS...
QUESTION 2 (IFRS 15) (10) Part a. A construction company enters into a contract with a customer to supply a new building. Control over the completed building will pass to the customer in two years (the contractor's performance obligation will be satisfied at a point in time). The contract contains two payment options. Either the customer can pay $ 5 million in two years when it obtains control of the building, or the customer can pay $ 4 million on...
2. In the receipts journal, once we select the customer we are not required to enter - a. the payment amount b. the original amount c. the date of payment d. we need to enter all the above details 3. The purchases journal may be used for the following - a. credit or pay later purchase transactions b. purchase transactions paid by cash c. purchase transactions paid by cheque d. all of the above 4. To correct a general journal...
On January 1, 2020, Flounder Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,900. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Flounder identifies two performance obligations and allocates $1,160 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...
On January 1, 2020, Novak Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,800. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Novak identifies two performance obligations and allocates $1,120 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...
Most questions answered within 3 hours.
-
what is IoT? How is it being used today? How will it be used in
the...
asked 6 minutes ago -
Please answer the four questions below.
1. If you were going to test a method that...
asked 21 minutes ago -
Provide two or three examples of support he uses to reinforce
his arguments?
The Alienation of...
asked 28 minutes ago -
QUESTION 1
Why do we see terms with multiple names in the database
community?
Consistency is...
asked 24 minutes ago -
In a titration experiment, 11.5 mL of 0.400 M H2SO4 neutralized
48.0 mL of NaOH. What...
asked 28 minutes ago -
A shot-putter throws the shot with a horizontal velocity of 10
m/s and a
vertical velocity...
asked 44 minutes ago -
Mildred sells industrial-sized refrigeration units. Her
prospective buyer's face looks tense, and his forehead is wrinkled....
asked 45 minutes ago -
Clark Heter is an industrial engineer at Lyons Products. He
would like to determine whether there...
asked 1 hour ago -
3. Use a text editor to create a comma-delimited file of user
IDs and passwords. Revise...
asked 1 hour ago -
Jensen and Associates has a projected balance
sheet that includes the following accounts. What is the...
asked 1 hour ago -
implement a doubly-linked list in C. Each node in the linked list should contain a string,...
asked 1 hour ago -
What are some best practices and things to avoid when developing
a PowerPoint presentation or file
asked 1 hour ago