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8 June, 01:25

Which of the following is considered a performance obligation?

A) A processing fee to obtain a bank loan

B) Extended warranties on electronic products

C) Quality-assurance warranties on electronic products

D) Up-front registration fees for a gym membership

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  1. 8 June, 01:27
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    The answer is: B) Extended warranties on electronic products

    Explanation:

    A performance obligation is a promise to deliver a product or provide a service.

    A quality assurance is not considered to be a performance obligation, but service type warranties (including extended warranties) are usually considered performance obligations.
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