Which of the following is the fifth step in the five-step revenue recognition process prescribed by ASC 606?
A)Satisfaction of a performance obligation.
B)Execution of an enforceable contract for the transfer of goods or services.
C)Collection of substantially all of the transaction price from the customer.
D)None of the above.

Question

Quizplus · Accepted Answer

The fifth step in the five-step revenue recognition process prescribed by ASC 606 is the satisfaction of a performance obligation, which means that the customer has received and accepted the goods or services provided by the company. The other options listed are steps 1 (B) and 3 (C) in the process, but step 5 specifically relates to the fulfillment of the company's obligations to the customer.

Which of the Following Is the Fifth Step in the Five-Step