The Third Step in the Process for Revenue Recognition Is

question 8

Multiple Choice

The third step in the process for revenue recognition is to

• A)determine the transaction price.
• B)identify the separate performance obligations in the contract.
• C)allocate transaction price to the separate performance obligations.
• D)recognize revenue when each performance obligation is satisfied.

---

Definitions:

Legal Speed Limit

The maximum or minimum speed at which vehicles may legally travel on a particular stretch of road.

Punishment

A consequence that decreases the likelihood of a behavior being repeated.

Reinforcing Surroundings

Environmental factors or conditions that strengthen a particular behavior through positive or negative reinforcement.

Negative Punishment

A behavioral modification technique involving the removal of a desirable stimulus to decrease the likelihood of a behavior occurring again.