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8 February, 21:45

Which of the following is not one of the steps for recognizing revenue? Identify the performance obligations of the contract. Identify the contract with the customer. Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods and Allocate the transaction price to the performance obligations.

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  1. 9 February, 00:52
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    The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.

    Explanation:

    There are five steps for revenue recognition established by the Financial Accounting Standards Board (FASB) which are: Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations and; Recognizing revenue.

    In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.
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