Question
Revenue from contracts with customers is recognized only when an identified performance obligation in the contract was satisfied by transferring a promised good or service
Revenue from contracts with customers is recognized only when an identified performance obligation in the contract was satisfied by transferring a promised good or service to a customer. A good or service is considered to be transferred when the customer obtains control. Control of a product sold is transferred to the customer only when A. The customer can direct the use of the product and obtains substantially all of the remaining benefits from it. B. The product is physically in the customers possession and substantially all the consideration for the product was transferred to the seller. C. The customer paid in full for the product and the right of return of the product has expired. D. It is probable that the seller will collect the consideration to which it is entitled under the contract.
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