Question

Which of these is true of the transaction price? It must be clearly specified by the...

Which of these is true of the transaction price?

It must be clearly specified by the contract for each separate performance obligation.
It is the amount of consideration a company expects a customer to grant them.
It excludes discounts, coupons, rebates, penalties, or nonrefundable fees.
It includes only cash and cash equivalents and does not include noncash consideration.
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Answer #1
ANSWER:It must be clearly specified by the contract for each separate performance obligation.
The transaction price is defined as the total amount of consideration a seller is legally entitled to, for transferring/exchanging the agreed goods or services.
The so-determined transaction price is allocated between different performance obligations outlined in the sale-contract
As such,these individual allocated amounts will be recognized as revenue as & when the respective performance obligation is fulfilled.
It includes noncash consideration also .at its fair value or its stand-alone selling price.
It includes discounts, coupons and rebates as variable form of consideration.
It is fixed by the selling company
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