Question

In: Accounting

Which is NOT included in the five-step process of revenue recognition? Select one: a. Allocate price...

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

Solutions

Expert Solution

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


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