Question

Bounced checks are also referred to as___transactions

Answer 1

A company satisfies a performance obligation when it fulfills its promised goods or services to the customer. Indicators of satisfaction include the absence of remaining obligations, customer legal title to goods, and customer acceptance of goods/services.

Step-by-step explanation:

According to the Revenue Recognition Principle, a company satisfies a performance obligation when it fulfills its promised goods or services to the customer. An indicator of satisfaction of a performance obligation is when the company has transferred control of the goods or services to the customer.

There are several indicators that can help determine if a performance obligation has been satisfied:

1. The company has no remaining obligations related to the goods or services.
2. The customer has legal title to the goods.
3. The customer has accepted the goods or services.

These indicators ensure that the company has met its obligations and the customer has received the promised goods or services.