Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 18 - Revenue Recognition - Review and Practice - Questions - Page 1031: 12

Answer

Transaction price refers to the cash or value expected to be received from a customer in exchange for value received by him/her in product or service. Other factors considered include the time value for money, amounts or value payable to the client as well as variable factors.

Work Step by Step

If you were buying a bread for 1 dollar, then the transaction price would be the $1.
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