According to the Joint New Standard for Revenue Recognition,issued by FASB

question 183

Multiple Choice

According to the joint new standard for revenue recognition,issued by FASB and IASB,which item below is NOT necessary?

• A)Identify the contract with the customer.
• B)Identify the separate performance obligations in the contract.
• C)Allocate the transaction price to the separate performance obligations in the contract.
• D)Recognize expenses as the entity satisfies the performance obligations.

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Definitions:

Government Regulations

The laws and rules established by governments to control or guide specific economic activities or markets.

Lending Standards

The set of criteria used by banks and financial institutions to determine the creditworthiness and eligibility of prospective borrowers.

Competitive Markets

Markets characterized by many buyers and sellers where no single participant can significantly influence the price of goods or services.

Externalities

Effects of a transaction or activity on third parties who are not directly involved, which can be either beneficial (positive externalities) or harmful (negative externalities).