Which of the following is not true about contract assets?
A) Contract assets are recorded when payment depends on something other than the passage of time.
B) Contract assets are recognized when the seller has a conditional right to receive payment.
C) Contract assets are recognized when the seller has been paid in advance for at least partially fulfilling its performance obligations.
D) Contract assets are not the same as accounts receivable.

Question

Quizplus · Accepted Answer

Contract assets are recognized when the seller has at least partially fulfilled its performance obligations but not yet been paid, and payment depends on something other than the passage of time.

Which of the Following Is Not True About Contract Assets