Under FASB ASC 606, the First Step in the Revenue

question 45

Multiple Choice

Under FASB ASC 606, the first step in the revenue recognition process is to

• A) Determine the transaction price
• B) Identify the contract with customers
• C) Allocate transaction price to the separate performance obligations
• D) Identify the separate performance obligations in the contract

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Definitions:

Learned Behavior

Skills or responses that are acquired through observation, experience, or instruction, rather than being innate or instinctual.

Shyness

A feeling of apprehension, lack of comfort, or awkwardness especially when a person is around other people.

Decreased

To become smaller or less in size, amount, intensity, or degree.

Fluctuated

To change or cause to change position constantly; to vary or oscillate unpredictably.