The first step in revenue recognition is to ________.
A) identify contracts with customers
B) allocate the transaction price to the performance obligation
C) identify the performance obligations
D) recognize revenue

Question

Quizplus · Accepted Answer

The first step in revenue recognition is to identify contracts with customers. This is because revenue can only be recognized when there is a contract in place that specifies the goods or services to be provided, the price to be charged, and the payment terms.

The First Step in Revenue Recognition Is to ________