In: Accounting
Which is NOT included in the five-step process of revenue recognition?
Select one:
a. Allocate price to performance obligation
b. Identify performance obligation
c. Recognize revenue when performance obligation is probable
d. Identify contract with customer
There are total five step process for revenue recognition
Step 1 | Identify contract with customer |
Step 2 | Identify with separate performance obligation with contractors |
Step 3 | Determine transaction price |
Step 4 | Allocate price to performance obligation |
Step 5 | Recognize revenue when the entity satisfy a performance obligation |
So answer is c) Recognize revenue when performance obligation is probable