Bailey Consulting,a Winnipeg Based Company That Uses the Contract-Based Approach

question 29

Multiple Choice

Bailey Consulting,a Winnipeg based company that uses the contract-based approach to revenue recognition,has just signed a contract to complete a strategic plan for a local business.The five-step model Bailey Consulting should follow to recognize revenue should include all of the following,except for

• A)Allocate the transaction price to performance obligations
• B)Sign the contract
• C)Identify the performance obligations
• D)Determine the transaction price

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Definitions:

Accretionary Prism

A geological structure formed by the accumulation of sedimentary and oceanic plate material scraped off a subducting plate, typically found at convergent plate boundaries.

Metamorphosed Rocks

Rocks that have undergone a transformation in mineralogy, texture, or chemical composition due to exposure to high pressures and temperatures.

Rotating Fault Blocks

geological structures that move around a vertical axis due to tectonic forces, altering the Earth's crust.

Layers Rotate

Geological process in which layers or strata of rock are tilted or turned from their original horizontal or vertical positions.