When multiple performance obligations exists in a contract, they should be accounted for as a single performance obligation when
A)each service is interdependent and interrelated.
B)the performance obligations are distinct but interdependent.
C)the product is distinct within the contract.
D)determination cannot be made.

Question

Quizplus · Accepted Answer

When services are interdependent and interrelated, they are accounted for as a single performance obligation because they are not distinct within the context of the contract.

When Multiple Performance Obligations Exists in a Contract, They Should