Which of the Following Is the Fifth Step in the Five-Step

question 55

Multiple Choice

Which of the following is the fifth step in the five-step revenue recognition process prescribed by ASC 606?

• A)Satisfaction of a performance obligation.
• B)Execution of an enforceable contract for the transfer of goods or services.
• C)Collection of substantially all of the transaction price from the customer.
• D)None of the above.

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Definitions:

Defaulted

The failure to meet legal obligations or conditions, such as not making the required payments on a loan.

Real Defences

Legal defenses that can be used to assert an individual's right or title against the whole world, including in matters of property and debt.

Negotiable Instrument

A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Promissory Note

A monetary document featuring a guarantee from one party to transfer a fixed sum of money to another party, either upon request or at a designated time in the future.