Podcast
Questions and Answers
A promised service is considered distinct when can the customer benefit from it?
A promised service is considered distinct when can the customer benefit from it?
- Only when the service significantly modifies other goods or services included in the contract.
- Only when the service is explicitly defined in the service contract.
- On its own or together with other resources that are readily available to the customer. (correct)
- Only when the service is used in conjunction with resources provided exclusively by the supplier.
What condition determines whether a promise to transfer a good or service is separable from other promises in a contract?
What condition determines whether a promise to transfer a good or service is separable from other promises in a contract?
- The promise must not significantly modify another good or service promised in the contract. (correct)
- The promise explicitly outlines all potential uses of the good or service.
- The promise includes penalties for non-compliance.
- The promise is documented separately and attached to the original contract.
Which scenario indicates that a promised good or service is NOT distinct within a contract?
Which scenario indicates that a promised good or service is NOT distinct within a contract?
- The customer already possesses similar goods that can be used in the same manner.
- The good is commonly sold separately by the supplier.
- The good significantly transforms another service specified in the contract. (correct)
- The customer can use the good independently to achieve a desired outcome.
In determining whether a good or service is distinct, what role do readily available resources play?
In determining whether a good or service is distinct, what role do readily available resources play?
How does the modification of another promised element in a contract affect the identification of a distinct good or service?
How does the modification of another promised element in a contract affect the identification of a distinct good or service?
Flashcards
Distinct Good or Service (Part 1)
Distinct Good or Service (Part 1)
The customer can benefit from the good or service either on its own or with readily available resources.
Distinct Good or Service (Part 2)
Distinct Good or Service (Part 2)
The promise to transfer the good or service is separately identifiable from other promises in the contract.
Explicitly Stated
Explicitly Stated
The item is distinct if it is explicitly stated in the contract or implied by the entity’s customary business.
Significantly Modifies
Significantly Modifies
Signup and view all the flashcards
Distinct Good or Service
Distinct Good or Service
Signup and view all the flashcards
Study Notes
- A promised good or service is distinct if the customer can benefit from it on its own or with readily available resources.
- The promise to transfer the good or service is separately identifiable from other promises in the contract.
- To be distinct, the item must be explicitly stated in the contract or implied by the entity’s customary business practices.
- A promised good or service is not distinct if it significantly modifies another good or service promised in the contract.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
A promised good or service is distinct when a customer can benefit from it independently or with readily available resources. The transfer of the good or service should be separately identifiable from other promises in the contract. The item needs to be explicitly stated in the contract.
