In applying the revenue recognition principle, which of the following statements regarding multiple performance obligations is incorrect? A. If the transaction has multiple performance obligations, the transaction price is allocated among the different performance obligations. B. Revenue is recognized after all performance obligations are satisfied. C. A contract might have multiple performance obligations. D. The business can recognize revenue when (or as) it satisfies each performance obligation by transferring a good or service to a customer
In applying the revenue recognition principle, which of the following statements regarding multiple performance obligations is incorrect? A. If the transaction has multiple performance obligations, the transaction price is allocated among the different performance obligations. B. Revenue is recognized after all performance obligations are satisfied. C. A contract might have multiple performance obligations. D. The business can recognize revenue when (or as) it satisfies each performance obligation by transferring a good or service to a customer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In applying the revenue recognition principle, which of the following statements regarding multiple performance obligations is incorrect?
If the transaction has multiple performance obligations, the transaction price is allocated among the different performance obligations.
Revenue is recognized after all performance obligations are satisfied.
A contract might have multiple performance obligations.
The business can recognize revenue when (or as) it satisfies each performance obligation by transferring a good or service to a customer.
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