Question

Which of the following is consistent with goods and services being distinct for purposes identifying separate performance obligations?

a.The seller regularly sells the good service separately
b.The buyer could use the good or service on its own.
c.The buyer could use the good or service in combination with goods or services the buyer could obtain elsewhere.
d.All of the above

Answer 1

The correct answer is d. All of the above. Goods and services can be considered distinct for the purposes of identifying separate performance obligations if the seller regularly sells them separately, the buyer can use them on their own, or the buyer can use them in combination with other goods or services from elsewhere.

Step-by-step explanation:

The correct answer is d. All of the above.

Goods and services can be considered distinct for the purposes of identifying separate performance obligations if:

1. The seller regularly sells the goods or services separately, indicating that they can be obtained individually.
2. The buyer can use the good or service on its own, without needing to combine it with anything else.
3. The buyer can use the good or service in combination with other goods or services that they could obtain elsewhere.

Therefore, all of the options listed in the question are consistent with goods and services being distinct for the purposes of identifying separate performance obligations.