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

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

"Revenue Recognition" The revised revenue recognition accounting standard employs a five-step process to achieve the core...

"Revenue Recognition" The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to recognize income upon the transfer of promised goods or services. Use the Internet or Strayer Library to research a company that bundles a product and a service. Examine income recognition of the bundled product and service for the company by addressing each step in the five-step process for revenue recognition. Give your opinion on the most critical step for accurately reporting revenue...

The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to...

The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to recognize income upon the transfer of promised goods or services. Use the Internet to research a company that bundles a product and a service. Examine income recognition of the bundled product and service for the company by addressing each step in the five-step process for revenue recognition. Give your opinion on the most critical step for accurately reporting revenue in the five-step process. Provide...

Provide an example of transaction that follows five-step revenue recognition principle. Please identify each revenue recognition...

Provide an example of transaction that follows five-step revenue recognition principle. Please identify each revenue recognition steps.

Which revenue recognition method would most likely be used by a retailer? Select one: a. upon...

Which revenue recognition method would most likely be used by a retailer? Select one: a. upon cash collection b. upon delivery c. during production d. point of sale Which of the following is a disadvantage of issuing bonds instead of common shares? Select one: a. The principal of the debt must be repaid at maturity. b. Earnings per share will increase. c. Shareholder control is not affected. d. Income to common shareholders may increase. When bonds are issued at a...

Which of the following items creates complications related to revenue recognition? Select one: A. Bonuses tied...

Which of the following items creates complications related to revenue recognition? Select one: A. Bonuses tied to sales goals B. Long-term construction contracts C. Multiple element sales contracts D. Consignment goods E. All of the above 2) The year-end Year 2 financial statements for Grandier Inc., report net sales of $117,351 million, net operating profit after tax of $4,687 million, net operating assets of $39,502 million. The year-end Year 1 balance sheet reports net operating assets of $42,683 million. The...

Revenue is recognized based on a five-step process that is applied to a company’s revenue arrangements....

Revenue is recognized based on a five-step process that is applied to a company’s revenue arrangements. Briefly describe the five-step process. Explain the importance of contracts when analyzing revenue arrangements. How are fair value measurement concepts applied in the implementation of the five-step process? How does the five-step process reflect the application of the definitions of assets and liabilities?

In Enron's bankruptcy, "Revenue Recognition" was one of the major issues. First, summarize the revenue recognition...

In Enron's bankruptcy, "Revenue Recognition" was one of the major issues. First, summarize the revenue recognition issue in Enron Bankruptcy. Second, as an auditor, what type of evidence would you want to examine to determine whether Enron was inappropriately recording revenue from the Sithe Energies contract?

Does the accounting change in revenue recognition for a new system which requires the recognition of...

Does the accounting change in revenue recognition for a new system which requires the recognition of deferred revenue matter to managers?

Select one step in the disaster process and discuss a specific role as the Community Health...

Select one step in the disaster process and discuss a specific role as the Community Health Nurse while assigned to this step.

What is the first step of the programming process? Select one: a. Survey, interview, or observe...

What is the first step of the programming process? Select one: a. Survey, interview, or observe employees to determine needs. b. Define the scope, goals, or success criteria for the programming. c. Obtain approval to perform programming from sponsors. d. Set a schedule and deadlines for programming tasks. A statement of requirements _____. Select one: a. for design is an internally produced space planning and relocation forecast. b. lists alternative options for enacting the goals of the strategic facility plan....

Subjects