The first step in the recognition of revenue is:
A) determine the transaction price.
B) identify the performance obligation in the contract.
C) identify the contract or contracts with the customer.
D) allocate the transaction price to the performance obligation.

Question

Quizplus · Accepted Answer

The first step in the recognition of revenue is to identify the contract or contracts with the customer. Only after this step is completed can the other steps, such as determining the transaction price and identifying the performance obligation in the contract, be carried out.

The First Step in the Recognition of Revenue Is