Where there are potentially multiple performance obligations within a single contract, if products or services are interdependent and interrelated, they must be
A) accounted for as multiple performance obligations.
B) combined and reported as a single performance obligation.
C) sold separately.
D) combined under a new contract.

Question

Quizplus · Accepted Answer

When products or services are interdependent and interrelated, they are considered a single performance obligation and must be combined and reported as such. This is outlined in ASC 606-10-25-13. Therefore, Choice B is the best option. Choices A, C, and D are not applicable in this situation.

Where There Are Potentially Multiple Performance Obligations Within a Single