1. Revenue recognition is based on a. Satisfact b. when good c. when there d. all of the above actory transfer of title to good or services in an arms- length transaction or services have been received and a firm promise is made for its payment has been an offer and acceptance given an agreed consideration none of the above 2. A performance obligation is: ie in a contract with a customer to transfer goods or services b. explicit c. is implicit d. not legally enforceable e. all of the above 3. T, F. A performance obligation is satisfied by transferring control of a promised good or service to a customer 4. T.F. Upfront payments do not transfer a good or services to a customer and are not considered to be a separate performance obligation 5. T, F, If a customer promises consideration of a contract in a form other than cash, the seller measures the noncash consideration at its fair value. s or service's stand-alone selling price is the price of the good or service when it is sold separately to similar customers in similar circumstances 7. T, F. When the seller's performance creates an asset (e.g. work-in-progress) that the customer 6. T, F. The best evidence of a good' controls throughout production, the performance obligation is satisfied over time. 8. Evidence that the customer has obtained control will include: a. the seller is entitled to payment b. the customer has legal title c. the customer has accepted the goods or service d. all of the above e. Only a and c above