A "contract asset" is a receivable that arises from the performance obligation of a contract.

Name: A "contract asset" is a receivable that arises from the performance obligation of a contract.
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A "contract asset" is recognized when a company has satisfied a performance obligation but does not yet have an unconditional right to payment; it differs from a receivable, which represents an unconditional right to payment.

A "Contract Asset" Is a Receivable That Arises from the Performance