Which of the following is considered a performance obligation?
A) Up-front registration fees for a gym membership
B) Extended warranties on electronic products
C) Quality-assurance warranties on electronic products
D) A processing fee to obtain a bank loan

Question

Quizplus · Accepted Answer

An extended warranty represents a performance obligation. An up-front registration fee and processing fee are prepayments, and a quality-assurance warranty represents a promise to fulfill the performance obligation to provide goods of acceptable quality.

Which of the Following Is Considered a Performance Obligation