A company has satisfied its performance obligation when the
A)company has received payment for goods or services.
B)company has significant risks and rewards of ownership.
C)company has legal title to the asset.
D)company has transferred physical possession of the asset.

Question

Quizplus · Accepted Answer

A company satisfies its performance obligation when it transfers control of the asset to the customer, which often occurs when the customer has physical possession of the asset.

A Company Has Satisfied Its Performance Obligation When the