The First Step in the Recognition of Revenue Is

question 25

Multiple Choice

The first step in the recognition of revenue is:

• A) determine the transaction price.
• B) identify the performance obligation in the contract.
• C) identify the contract or contracts with the customer.
• D) allocate the transaction price to the performance obligation.

---

Definitions:

Sensory Input

Information gathered by sensory receptors about internal and external changes.

Central Nervous System

The part of the nervous system that consists of the brain and spinal cord, responsible for processing and sending out nervous signals.

Social Influence Theory

A theory that examines how individual thoughts, actions, and feelings are influenced by social interactions and the presence of others.

Hypnotic Subjects

Individuals who are under hypnosis and are more open to suggestions, alterations in perception, and changes in behavior or thought processes.