To satisfy a performance obligation means that:
A)the provider has substantially completed the service for the customer.
B)the goods have been transferred to the customer who has assumed ownership and control over goods.
C)the selling entity has done everything required to earn the revenue.
D)All of the above statements are correct.

Question

Quizplus · Accepted Answer

To satisfy a performance obligation, all three conditions must be met - substantial completion of service, transfer of ownership and control of goods, and fulfillment of all requirements to earn revenue. Therefore, all the statements in the given options are correct, and the best answer is D.

To Satisfy a Performance Obligation Means That