Under FASB ASC 606, the fourth step in the revenue recognition process is to
A) Recognize revenue when each performance obligation is satisfied
B) Identify the separate performance obligations in the contract
C) Allocate transaction price to the separate performance obligations
D) Determine the transaction price

Question

Quizplus · Accepted Answer

The fourth step in the revenue recognition process under FASB ASC 606 is to allocate the transaction price to the separate performance obligations in the contract. This step follows identifying the contract with a customer, identifying the performance obligations, and determining the transaction price.

Under FASB ASC 606, the Fourth Step in the Revenue