A contract asset
A) represents the seller's performance obligation.
B) arises when a customer's payment of consideration occurs prior to the seller's performance under the contract.
C) represents the seller's unconditional right to receive consideration from a customer.
D) arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time.

Question

Quizplus · Accepted Answer

A contract asset arises when the seller's right to consideration is conditional on something other than the passage of time, such as the company's future performance.

A Contract Asset