Final answer:
The last step in the revenue recognition process is to recognize revenue when each performance obligation is satisfied.
Step-by-step explanation:
The last step in the revenue recognition process is to recognize revenue when each performance obligation is satisfied.
Revenue recognition is an important accounting principle that determines when a company should record revenue from the sale of goods or services. According to the Generally Accepted Accounting Principles (GAAP), revenue should be recognized when the performance obligation is satisfied, which means when the company has fulfilled its obligations to deliver goods or services to the customer.
For example, if a company sells a product to a customer, revenue should be recognized when the product has been delivered, and the customer has accepted it. If a company provides services to a customer, revenue should be recognized when the services have been performed.