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Question 7 (5 marks) Indicate each of the following statements true or false. 1. The new revenue recognition standard adopts a liability approach as the

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Question 7 (5 marks) Indicate each of the following statements true or false. 1. The new revenue recognition standard adopts a liability approach as the basis for revenue recognition. 2. The first step in the revenue recognition process is to identify the separate performance obligations in the contract. 3. Revenue from a contract with a customer cannot be recognized until a contract exists. 4. If the performance obligation is not highly dependent on, or interrelated with, other promises in the contract, then each performance obligation should be accounted for separately. 5. A contract liability is a company's obligation to transfer goods or services to a customer for which the company has received consideration from the customer

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