Answer: All performance obligations have been satisfied except for payment.

Under the converged standards for revenue recognition, a receivable is recognized on the seller's balance sheet only when all performance obligations have been met, except for payment. This aligns with the five-step revenue recognition process: 1. **Identify the contract(s) with a customer.** 2. **Identify the separate performance obligations in the contract.** 3. **Determine the transaction price.** 4. **Allocate the transaction price to the performance obligations.** 5. **Recognize revenue when (or as) the entity satisfies a performance obligation.** - **Option A is incorrect** because signing a contract (covered in steps 1-4) does not alone warrant revenue recognition or the recognition of a receivable. - **Option B is correct** as it reflects the point at which a receivable is recognized. - **Option C is incorrect** because receiving consideration in advance results in a contract liability, not a receivable.

Author: LeetQuiz Editorial Team