Which of the following is not one of the five steps for recognizing revenue?

Question

Quizplus · Accepted Answer

The five steps for recognizing revenue are:
1. Identify the contract with the customer
2. Identify the 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) each performance obligation is satisfied.

Estimating variable consideration is a part of step 3, determining the transaction price. Therefore, D is the incorrect answer.

Which of the Following Is Not One of the Five