Question: Hey, what does the following below mean? what does performance obligation mean? would you be able to explain the to me? thank you Warranties 1.

Hey, what does the following below mean? what does performance obligation mean? would you be able to explain the to me? thank you

Warranties

1. Extended Service - considered separate performance obligation; usually long-term and not legally required to be offered. Recognized as unearned warranty revenue until performance obligation is satisfied.

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