1. The new ASC Topic 606 provides a model for revenue recognition that includes:

Multiple Choice

• two steps.

• four steps.

• five steps.

• three steps.

2. Which of the following statements is true regarding the five-step model in the ASC Topic 606 guidance for revenue recognition?

Multiple Choice

• The transaction price is not relevant.

• If a sale is not paid for on time, the seller should not recognize revenue.

• The performance obligations in the contract need to be identified.

• The sale itself is the sole criterion for recognizing revenue.