"The amount of consideration to which the entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties" is the definition of:
A) the contract.
B) the consideration.
C) the performance obligation.
D) the transaction price.

Question

Quizplus · Accepted Answer

The definition provided corresponds to the concept of transaction price, which is the amount of consideration an entity expects to receive in exchange for transferring goods or services to a customer. Choice A corresponds to the contract as a whole, choice B corresponds to one of the components of transaction price, and choice C refers to a promise to transfer goods or services to a customer.

"The Amount of Consideration to Which the Entity Expects to Be