The revenue recognition principle: The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed. Variable consideration: Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events. To identify: The false statement regarding the revenue recognition from the given option.

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Chapter 5, Problem 6CPA

To determine

The revenue recognition principle:

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

To identify: The false statement regarding the revenue recognition from the given option.

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