What term describes the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer,excluding amounts collected on behalf of third parties?

Question

Quizplus · Accepted Answer

The term that describes the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties is the transaction price. This is because it represents the amount of consideration that the entity expects to receive for its performance obligations. The settlement price refers to the price at which a financial instrument is settled. The contract price is the price stated in the contract between the parties. Fair value is the price at which an asset can be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

What Term Describes the Amount of Consideration to Which an Entity