Which of the following is not a step in the recognition of revenue?
A) Recognise revenue when the entity satisfies a performance obligation.
B) Allocate the buying price to the goods or services.
C) Identify the performance obligation.
D) Determine the transaction price.

Question

Quizplus · Accepted Answer

Allocating the buying price to the goods or services is a step in determining the transaction price, which is one of the steps in recognizing revenue. However, it is not one of the steps in the recognition of revenue itself. The other three choices are all steps in the recognition of revenue.

Which of the Following Is Not a Step in the Recognition