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
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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 |
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