Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Financial Accounting

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is NOT one of the five steps in the revenue recognition process under ASC 606?

Recognize revenue when (or as) the entity satisfies a performance obligation

Estimate future cash flows from the contract

Determine the transaction price

Identify the contract with a customer

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the revenue recognition process under ASC 606, which consists of five key steps. These steps are designed to ensure that revenue is recognized in a consistent and transparent manner.

Step 2: Review the five steps of ASC 606: (1) Identify the contract with a customer, (2) Identify the performance obligations in the contract, (3) Determine the transaction price, (4) Allocate the transaction price to the performance obligations, and (5) Recognize revenue when (or as) the entity satisfies a performance obligation.

Step 3: Compare the options provided in the question to the five steps of ASC 606. The options are: 'Recognize revenue when (or as) the entity satisfies a performance obligation,' 'Estimate future cash flows from the contract,' 'Determine the transaction price,' and 'Identify the contract with a customer.'

Step 4: Identify which option does not align with the five steps of ASC 606. Specifically, 'Estimate future cash flows from the contract' is not part of the revenue recognition process under ASC 606.

Step 5: Conclude that the correct answer is 'Estimate future cash flows from the contract,' as it is not one of the five steps in the revenue recognition process under ASC 606.