Under FASB ASC 606, the last step in the revenue recognition process is to
A) Allocate transaction price to the separate performance obligations
B) Recognize revenue when each performance obligation is satisfied
C) Determine the transaction price
D) Identify the contract with customers

Question

Quizplus · Accepted Answer

The last step in the revenue recognition process under FASB ASC 606 is to recognize revenue when each performance obligation is satisfied. This means that revenue can be recognized only when a company has met all of its obligations under a contract with a customer. Once all obligations have been fulfilled, revenue can be recognized for the performance of those obligations.

Under FASB ASC 606, the Last Step in the Revenue